Live data from Hacker News

Microsoft: Cloud services demand up, prioritization rules in place

zdnet.com

121–130 of 275 posts

Re: Microsoft: Cloud services demand up, prioritization rules in place

#121

Earlier quoted context omitted.

From here in Australia, developer tools tells me the video is coming from vod-akc-oc-east-1.media.dssott.com which appears to be an Akamai thing.

Akamai is just a CDN so it's cloud agnostic.

Yeah, but most of the demand base load is going to be carried by the CDN... that is the whole point of a CDN.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#122
post #73

Earlier quoted context omitted.

My theory is that Amazon and Google are more prepared to handle surges because they run some of the largest web properties. This like every day is Black Friday for Amazon. It's rough, but not something they have never dealt with before.

GCP and GSuite had outages this week listed on their status pages. AWS has been rock solid for us in the 3 regions we operate in.

The GCP outages don't seem to have been capacity related though, they were both networking issues. In one of them they broke their traffic routing to a datacenter in Atlanta, and in the other one an unnamed cloud provider (that pretty much has to be AWS) broke inbound inter-cloud traffic in us-east1 (so presumably AWS borked the link from Google's us-east1 to AWS us-east-1). These seem like normal sorts of cloud issues that happen to coincide with covid-19.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#123

Earlier quoted context omitted.

Ability to pay is only one aspect of demand. There’s also how much you actually want it, and the amount of opportunity cost you’re willing to pay. Keeping prices artificially low keeps demand artificially high, while supply doesn’t increase, or cannot increase if it’s inelastic.

It doesn't matter if demand is artifial if there's a filter in place to allocate resources on a need-basis. Not matter the demand from non-need customers, they won't get it, or get less of it. The point in a crisis isn't to let markets find a natural equilibrium, which could mean it stabilizes into a state that isn't optimal to public health. On a crisis, the point is to prioritize those usages that will deal with an…

What mechanism do you plan to use to determine the severity of a need?

Re: Microsoft: Cloud services demand up, prioritization rules in place

#124

Earlier quoted context omitted.

Just like outside a crisis situation.

Possibly, but in a crisis situation it is quite a bit more important to deliver adequate service to the "need" group. Outside of a crisis, the "need" group can pursue less expensive alternatives at their leisure. Right now, "fast" is critical.

And outside of a crisis situation demand patterns change much more gradually - long enough for manufacturers to ramp up production, more competitors to emerge etc. The normal feedback loops that make core goods available to the masses don't have time to happen right now.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#125

Earlier quoted context omitted.

>> Why would Microsoft be disproportionately affected by this? Nobody gets fired for buying Microsoft..er IBM. Inertia too.

If you're shopping for cloud providers, nobody gets fired for picking AWS. Microsoft is if you're looking for email, spreadsheets, and desktop publishing.

Unless you're a vendor for Walmart.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#126

Earlier quoted context omitted.

Utilization.

Their utilization has gone up 700%? Bullshit.

>"We have seen a 775 percent increase of our cloud services in regions that have enforced social distancing or shelter in place orders."

Seems to be a cherry picked statistic, not an overall increase in utilization.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#127

Earlier quoted context omitted.

> I'm fascinated by the concept of prioritization rules in place rather than simply raising prices Do you realise that it's potentially illegal to increase prices based on market demand during a crisis?

Right. It's important to the public that scarce goods instead by allocated by willingness to stand in line. What does standing in line mean for a corporation that could be anywhere in the world? Maybe some kind of proof-of-work scheme for the CEO or majority owner? Azure could service VM creation requests in the order of their creation, but "take a number" doesn't work as well. The opportunity cost of what else you c…

Your tone seems to be that it's either allocate by price or by standing in line.

But it's analogous to toilet paper. If you are limited to one package per trip through the checkout line, yes, you can consider that to be allocating by willingness to stand in line. But the intent is simply to have a (not terribly strict) quota, and not to have you go through many times.

So it isn't as fundamentally screwed up as proof-of-work. Nobody is supposed to actually treat it that way.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#128
post #17
post #2

Why would Microsoft be disproportionately affected by this? Are we expecting similar decrees from AWS and GCP? Or was Microsoft operating with less runway before this began?

Working with all three of them, so here's my two cents: 1. Mostly traditional, "legacy" companies have been hit hard by this. Ones that don't have culture or technology of work-from-home. Those companies use some Microsoft products. Also, Microsoft has been poaching them heavily, handing out trials, bundling licenses and so on. A lot of them don't actually buy stuff from Microsoft, but through 3rd party vendors which…

> But the thing I'm mostly pissed of is the status page. VM's are failing left, right and center and everything is nice and green on the status page.

There are three kinds of lies... lies, damned lies, and cloud service status pages.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#129

Earlier quoted context omitted.

Possibly, but in a crisis situation it is quite a bit more important to deliver adequate service to the "need" group. Outside of a crisis, the "need" group can pursue less expensive alternatives at their leisure. Right now, "fast" is critical.

And outside of a crisis situation demand patterns change much more gradually - long enough for manufacturers to ramp up production, more competitors to emerge etc. The normal feedback loops that make core goods available to the masses don't have time to happen right now.

Precisely. It seems like most manufacturing & supply chains have some elasticity for increased demand, e.g., toilet paper manufacturers were able to increase production either 10% or 20% very quickly (I forget which), but after going all out with 24 hour shifts, you can't do much more in the short term. Also, the more companies that have to do this, the more likely there will be correlated supply chains that feed those companies their raw materials, meaning the issue contaminates the supply & logistics process one more link up the chain.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#130

Earlier quoted context omitted.

> It's important to the public that scarce goods instead by allocated by willingness to stand in line. It's important to keep in mind that a higher price is unlikely to lead to much additional capacity due to the nature of this shock. Companies have to do business with their customers for many years after this is over. "Sorry, we're overloaded with demand due to this crisis" sounds a lot better than "Pay us ten times…

"Sorry, we're overloaded with demand due to this crisis" is "go f* yourself." Although you're right, Microsoft may have correctly assessed that its customer relationships will turn out better if it leaves them completely hosed vs. hosed with an unpleasant escape hatch. It's still an interesting question: what kinds of allocation systems are best when for whatever reason market pricing is off the table? There are cert…

Some products or services, every customer needs about the same amount, or the same minimum amount. It seems reasonable to have a maximum allocation in a crisis for those.

If different people need vastly different amounts of something, either they are able to judge, in which case prices work, or they are not, in which case some independent means of allocation has to be used.

I don't think waiting in line is a good method, but that doesn't mean unregulated prices always are either.

Post reply on HN