Live data from Hacker News

81% of IT teams directed to reduce or halt cloud spending

venturebeat.com

131–140 of 235 posts

Re: 81% of IT teams directed to reduce or halt cloud spending

#131
post #117

This is why I'm sticking with pure vps/dedi providers - they'll give you fixed monthly costs per instance, plus network transfer, which is usually free below some threshold (unlike the Big Three). If you know what you are doing, you can negotiate fixed price two/three years in advance and get a discount. There is an initial setup cost, but maintenance is usually cheap if you put things in place correctly, automate ev…

[deleted]

Re: 81% of IT teams directed to reduce or halt cloud spending

#132

Earlier quoted context omitted.

> - Using many accounts is by far the best way to segregate unrelated projects. But then, you will end up paying for many criminally underutilized NAT GWs, VPN connections, Load Balancers, etc... And you can have business support only on one account... obviously you can go Enterprise and have the same support level on everything but pay a lot more $$$

Is this the same for child accounts created via AWS Orgs?

I guess so, unless we were severely misinformed. We had historically one big AWS account, we are now splitting it into more fine-controlled accounts and migrated under a "root" account following AWS best-practices to have unified billing and we can enable the Business support only on the big (legacy) account where we run 100% prod and other things. I don't think we had the option to enable it on the root account and get all the other accounts covered.

Re: 81% of IT teams directed to reduce or halt cloud spending

#133
post #51
post #31

Earlier quoted context omitted.

I think growing food is the wrong analogy, and cooking is better. Growing food is more like designing and manufacturing servers. Cooking is more like taking these goods and putting them to use. There are plenty of places that host their own servers, including people that have these servers in their home or office. But far fewer produce these machines. You could also say that cooking food is dumb. What's wrong with ha…

The major cloud providers are designing their own servers, so we’re back at “growing your own food”.

They are not doing it because it provides an advantage to their customer but because it allow them to differentiate (and lock people).

Re: 81% of IT teams directed to reduce or halt cloud spending

#134

Marketing can only go so far. Are more people finally starting to take their heads out of the cloud? Not only do cloud providers need to pay their own costs, they also need to make a profit on top of that; thus, if one thinks critically, the only time renting can be cheaper than owning is if it's short-term.

The cloud is much more than that. The premium you pay for a cloud service is - Ability to scale up and scale down in a matter of minutes. - Reduction in variable capital costs required to meet peak demand. - Ability to test and prototype products or services at scale without significant investments. - Ability to have, on tap, products and services that in a traditional sense, would take a lot of time and manpower (A…

> Reduction in variable capital costs required to meet peak demand.

If I understand your point correctly it is the opposite - cloud not only lets you trade capex for opex, but also allows for opex variance. Yes, clouds do let you scale up and down (if the application is designed to do that) easily, however how many businesses do really have high load and geography variability?

That is the core point behind cloud vs on-prem: capex vs opex and opex variance.

Re: 81% of IT teams directed to reduce or halt cloud spending

#135
post #52

Cloud computing made financial control the new engineering. Unless your service is running at an astronomical scale, nobody cares that your refactor saved 50 MB of RAM. The cloud vendors don't care if your workload needs 128 MB RAM, 256 MB RAM, 8 GB RAM. They'll run anything. Just pay for it. The industry is in a weird spot right now where Finance doesn't understand Engineering well enough to provide proper direction…

But do they have to care? The right answer is to set an actual budget. Finance to engineering: you have $x to work with. Then engineering cares, and the needed talks/concern about resource usage can happen. Part of engineering is optimization, cost is one metric to optimize.

You need to understand the engineering to set a sensible budget. What should the concrete budget be for a new 50-story skyscraper in New York City? You'd need to know quite a bit about the specific building and the construction market to answer that question. You couldn't just be some MBA with a spreadsheet.

Re: 81% of IT teams directed to reduce or halt cloud spending

#136
post #96

Incomming, the submarine articles telling you that bare metal is back and that it was cool to setup your monolith with vertical scaling all along.

As much as I love shitting on AWS, at this point I would just retire if I ever need to interact with a server vendor again.

You can rent someone else’s already-racked bare metal, of course. Hetzner has server people to do all that crap for you.

Re: 81% of IT teams directed to reduce or halt cloud spending

#137
post #66

Earlier quoted context omitted.

I did an extensive cost analysis of a 1MW datacenter vs Cloud 10 years or so ago, so this stale data but take it as an anecdote. Accounting for the lease, facillity equipment (UPS, STS, CRACs, generator, fuel, raised flooring, cabinets, BMS, etc), compute equipment (PDUs, servers, spare parts), facilities and technical staff, the costs for AWS were substantially cheaper. The trick is you need skills, most of which ar…

Datacenter skills have NEVER been in more demand, datacenter is BOOMING and even the people who work in the AWS datacenter aren’t doomed to work there for eternity their skills forever captured by big tech. I honestly don’t know what you’re talking about, the skills are out there, they just don’t come cheap. Many businesses at a scale to run their own datacenters are also at a scale to have a relationship with local…

>> the people who work in the AWS datacenter aren’t doomed to work there for eternity their skills forever captured by big tech.

I think it's kind of "golden handcuffs" type of situation - if you want these people to come and work for you you have to compete on salary with Amazon, and Bezos has much deeper pockets than you.

Re: 81% of IT teams directed to reduce or halt cloud spending

#139

The solution never tried: share the spoils of efficiency with your teams. Give them a percentage or even a few basis points of what they save back as charitable contributions to an organization of their choice. Watch how fast the bill will go down

At Yahoo in 2015 we had the CFO challenge: find cost savings and get a bonus up to $50k. I think it was $1k per $100k in annual savings. One guy turned off staging at night and saved $600k/yr.

So he just got $6000 once for saving $600k/yr? Let's say the company didn't overspent on that, especially if you factor in that after 5 years €3M has already been saved. I don't know the incentives for sales, but I can imagine that theirs look better than 0,2% (if you just limit the projected savings over 5 years).

Re: 81% of IT teams directed to reduce or halt cloud spending

#140
post #18

Marketing can only go so far. Are more people finally starting to take their heads out of the cloud? Not only do cloud providers need to pay their own costs, they also need to make a profit on top of that; thus, if one thinks critically, the only time renting can be cheaper than owning is if it's short-term.

Renting can be cheaper than owning if the person you rent from can leverage economies of scale that you can't dream to achieve.

Renting is typically cheaper if you use the thing rarely. If you use it regularly it is typically cheaper to buy.
Post reply on HN