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Why Dropbox decided to build its own infrastructure and network

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Re: Why Dropbox decided to build its own infrastructure and network

#141
post #4

This means their EBITDA now probably shows profitability (servers they own are amortizable [the A in EBITDA], where are AWS is expensed.) Edit: Amortization/Depreciation can generally be used interchangeably.

This could have been the decision driver. It is also why investors increasingly look past ebitda to free cash flow which is harder to game.

Re: Why Dropbox decided to build its own infrastructure and network

#142

Three data centers "biult" by only the dozen people on the infrastructure team? Not possible. I wish articles like this wouldnt hype small teams where it is obvious that most all of the work was outsourced. It would seem that dropbox here was still operating as customer: ordering rather than physically biulding much of anything. Those dozen dropbox people were not running cables.

The article is unfortunately not very specific and I can not find much information with a quick search, but:

It's very possible that they did this all on their own provided they rented cabinets/cages in an existing facility like Equinix, which is extremely common. Then they do not need to manage power/generators, fiber into the building, or any other data center necessities.

It does not take very many people to do the wiring inside a cage, especially considering Dropbox has been doing this over the span of a few years. If you've ever been physically in a data center (personally visited a few Equinix facilities myself), it's mostly one person from a company working in a cage that is wiring everything. I've rarely seen multiple people do wiring, and that same person will come back every day thereafter to continue working until the job is done.

What they are doing sounds entirely feasible. If money is no object in regards to equipment, with 3 data centers, I'd honestly say you only need 4 competent people to get the job done.

3 on-site. 1 remote/office.

From there, the more the merrier. A guy to lift the equipment up as well is nice sometimes - can be pretty heavy!

Re: Why Dropbox decided to build its own infrastructure and network

#143

Dropbox hasn't dropped AWS, they moved things off AWS as it made sense to. The article is talking about two things, the move of file storage and a network backbone. Neither of which were done recently. The file storage move from S3 to Magic Pocket is detailed in these blog posts: https://blogs.dropbox.com/tech/2016/03/magic-pocket-infrastr... https://blogs.dropbox.com/tech/2016/05/inside-the-magic-pock... https://blo…

The 'value' cloud services provide is purely for experimental services an organization does not want to commit physical assets. Those deluded to believing cloud services provide any value beyond test service deployments are propaganda poster boys for today's tech sucker awards.

You are extremely wrong. The Dropbox story shows that if the bulk of your value comes from selling a commodity (storage) then you need to improve your margins by moving away from a provider that also makes the bulk of their money selling the same commodity.

For companies where the value lies in the utility of a service that can't be easily replicated, you have pricing power to make the convenience of AWS worth the expense.

Re: Why Dropbox decided to build its own infrastructure and network

#144

Earlier quoted context omitted.

> heir blend of ridiculously overpriced bandwidth. For someone not at netflix's level, can you recommend somewhere with significantly cheaper bandwidth.

While I don't know what pricing AWS has for high bandwidth customers since it's not public, I do know that the public prices are really high. The thing is, even for smaller companies it's easy to get way better deals on bandwidth. I'm currently using a provider that runs openstack and I'm paying less than $0.009/GB, from the first byte(no commitment). I'd say that is very cheap compared to AWS pricing at $0.05/GB abo…

> I'm currently using a provider that runs openstack and I'm paying less than $0.009/GB, from the first byte(no commitment).

Would you mind sharing who that is?

Re: Why Dropbox decided to build its own infrastructure and network

#145
post #70

Earlier quoted context omitted.

Early SSL/TLS termination is to reduce latency; the longer-lived connections from PoPs to Dropbox datacenters is over a TLS 1.2 connection with PFS. See an earlier blog post[1]: > We use TLS 1.2 and a PFS cipher suite at both our origin data centers and proxies. Additionally, we’ve enabled upstream certificate validation and certificate pinning on our proxy servers. This helps ensure that the edge proxy server knows…

Does this change the legal/geo jurisdiction of the SSL/TLS handshake?

I'm not a lawyer, but I did work on one of the previous Transparency Reports[1]. From our most recent one:

> Between July and December 2016, Dropbox did not comply with any non-US government legal process unless issued by a US court as a result of the Mutual Legal Assistance Treaty process.

... if that helps answer what you're getting at :)

[1]: https://www.dropbox.com/transparency/reports

Re: Why Dropbox decided to build its own infrastructure and network

#146

Earlier quoted context omitted.

The 'value' cloud services provide is purely for experimental services an organization does not want to commit physical assets. Those deluded to believing cloud services provide any value beyond test service deployments are propaganda poster boys for today's tech sucker awards.

You are extremely wrong. The Dropbox story shows that if the bulk of your value comes from selling a commodity (storage) then you need to improve your margins by moving away from a provider that also makes the bulk of their money selling the same commodity. For companies where the value lies in the utility of a service that can't be easily replicated, you have pricing power to make the convenience of AWS worth the ex…

Pretty sure that the value of Dropbox doesn't come from the storage. It comes from their software. The magic thing that allows to replicate all your data seamlessly between as many computers and phones as you want, without the need to click any button or understand what the word storage even means.

Re: Why Dropbox decided to build its own infrastructure and network

#147

I'll be 100% honest, I didn't realize Dropbox was still on AWS. You figure at a certain scale it makes more sense to run your own solution.

Yeah and that's why it amazes me that Netflix uses Amazon a straight competitor that uses the money it makes from Netflix to compete with Amazon prime.

Migrations and self hosted infrastructure don't do themselves. Netflix can get quite a lot of stuff done on AWS for the $200k+ dollars it would take to hire one single employee.

Re: Why Dropbox decided to build its own infrastructure and network

#148

Earlier quoted context omitted.

They're totally separate businesses. The people that treat Netflix like their customer aren't the same people making strategic decisions about Amazon Prime. Amazon is a ridiculously large company.

They are not totally separate when the P&L roll up on the same spreadsheet.

That depends on how the Amazon business is organized. It's possible that the P&L never join on the same spreadsheet.

Re: Why Dropbox decided to build its own infrastructure and network

#149

Earlier quoted context omitted.

> heir blend of ridiculously overpriced bandwidth. For someone not at netflix's level, can you recommend somewhere with significantly cheaper bandwidth.

While I don't know what pricing AWS has for high bandwidth customers since it's not public, I do know that the public prices are really high. The thing is, even for smaller companies it's easy to get way better deals on bandwidth. I'm currently using a provider that runs openstack and I'm paying less than $0.009/GB, from the first byte(no commitment). I'd say that is very cheap compared to AWS pricing at $0.05/GB abo…

It's interesting that what you consider a great provider is only doing 6 times cheaper than AWS. That's not much of a discount.

Re: Why Dropbox decided to build its own infrastructure and network

#150
post #79

What does AWS do when someone moves 500PB of storage off of their systems? Do they sit idle till some other big customer comes along or is their growth so phenomenal that a 500PB move off doesn't even slow new (storage) deployments at all and just keep up their pace?

There are hard quota enforced on storage. You will have to fill a truckload of forms to get your quota raised to 500PB.

I personally never asked for that much but I'd speculate that they won't give you that in any single region.

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