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Snap commits $2B over 5 years for Google Cloud infrastructure

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Re: Snap commits $2B over 5 years for Google Cloud infrastructure

#201
post #99

Earlier quoted context omitted.

I love Hacker News, where a random person can tell a company their $2 billion plan on infrastructure is "a really bad move" with authority

A "random person"? How about a HN reader who is taking part in a discussion? They offered their view and why they believe that. Nowhere did they they claim "authority." Unlike your snide commentary they are actually contributing to the conversation.

This. If opinions aren't welcome on HN the whole site is pointless.

Re: Snap commits $2B over 5 years for Google Cloud infrastructure

#202
post #111

Earlier quoted context omitted.

To be fair, that company is run by these same 'random persons' that are commenting here.

That doesn't mean anything, though. "Some people who do X also do Y" does not imply that "people who do Y are qualified to comment on X." For example: Elon Musk is a Twitter user. I too am a Twitter user. So's Kylie Jenner, Donald Trump, and random spambots. Using the same service does not mean they're equally qualified to speak with authority about the same things.

If both x and y are true for a person then he is definitely qualified.

Re: Snap commits $2B over 5 years for Google Cloud infrastructure

#203
post #68

Earlier quoted context omitted.

Whether you want to run fully in the cloud, or homegrown DCs or a combination, you need talented people who bring the required savings about. When it comes to in house DCs, very few companies seem to have that top talent. For example, most companies are simply buying regular Dell/HP servers, Cisco switches/routers, slapping them in cabinets and calling it a day. They simply do not know how to take advantage of high d…

It doesn't take "top talent" to run the physical side of the DC. It takes processes and detail-oriented people who care. At this point, with datacenters having been in wide production for the last 20 years, there should be plenty of 7+ year veterans. (though yes, I have known in-house service providers that couldn't set up a new VM to save their life)

Yeah, some of the stuff in this thread is crazy. Are all these people new or what? Not too long ago, running on bare metal was the only serious option (shared hosting is non-serious). Cloud might offer some conveniences (just because AMZ and friends have made it so easy to give them more money), but the alternative is not that hard!

Re: Snap commits $2B over 5 years for Google Cloud infrastructure

#204
post #99

Earlier quoted context omitted.

I love Hacker News, where a random person can tell a company their $2 billion plan on infrastructure is "a really bad move" with authority

On HN nobody knows if you're a dog, or if you run infrastructure at Facebook...

Or a dog running infrastructure on FB ;)

Re: Snap commits $2B over 5 years for Google Cloud infrastructure

#206
post #99

Earlier quoted context omitted.

I love Hacker News, where a random person can tell a company their $2 billion plan on infrastructure is "a really bad move" with authority

A "random person"? How about a HN reader who is taking part in a discussion? They offered their view and why they believe that. Nowhere did they they claim "authority." Unlike your snide commentary they are actually contributing to the conversation.

Yes, the OP does claim authority, by stating his opinion as a plain fact, without knowing anything about it other than the publicly available information, and at the same time labeling a company that has raised 2.6 billion and has 100+ employees as complete idiots.

Good discussion would have ensued after a statement like "I wonder why they don't build out their own infrastructure because at this scale it is usually cheaper to...".

I could imagine that with this big a deal, they could get rate reductions that get the cost down to a comparable level to building out your own datacenters (at least 2) and hiring qualified ops people.

It might very well be a bad move, but you really can't say unless you know more.

Re: Snap commits $2B over 5 years for Google Cloud infrastructure

#207

Earlier quoted context omitted.

Facebook reported $27 billion in revenue in 2016. Snap reported $400 million. You're talking two orders of magnitude lower than Facebook and almost three lower than Google. Snap simply does not have the resources to pour into custom data centers, even if they can raise $2 billion for infra over 5 years. Unless they have serious talent already, they're not going to match Google's massive 15 year investments by a long…

Yep, agreed. Snap only has 1900 employees.

Where did you come up with that?

Crunchbase says they have 100-250 employees. Their LinkedIn profile says 50-200.

Re: Snap commits $2B over 5 years for Google Cloud infrastructure

#208
post #99

Earlier quoted context omitted.

I love Hacker News, where a random person can tell a company their $2 billion plan on infrastructure is "a really bad move" with authority

On HN nobody knows if you're a dog, or if you run infrastructure at Facebook...

woof

Re: Snap commits $2B over 5 years for Google Cloud infrastructure

#209

Needing this amount of resources implies that Snap is expecting huge growth. This sounds like a really bad move on their part and they should have committed to building out their own infrastructure on 'bare metal' over the next 5 years instead. If you read their S-1, they list a dependence on Google cloud as one of their big risk factors. Yet they then go ahead and make this commitment instead of working towards elim…

To be fair, they did address this concern under the 'Operating Leverage in Our Business' section where they said that they may look for another third party to rely on for cloud computing or they build their own infrastructure.

"We have committed to spend $2 billion with Google Cloud over the next five years and have built our software and computer systems to use computing, storage capabilities, bandwidth, and other services provided by Google Cloud, some of which do not have an alternative in the market. We are currently negotiating an agreement with another cloud provider for redundant infrastructure support of our business operations. In the future, we may invest in building our own infrastructure to better serve our customers."

Re: Snap commits $2B over 5 years for Google Cloud infrastructure

#210

So they hit $400m of revenue in 2016 and have committed to spend at least that much on infrastructure each year for the next 5 years? After all the costs for staffing and everything else they better I hope they achieve amazing growth if they ever intend to profit.

Will Snap exist in 5 years?

Yes, I think so.

I'm not sure about Twitter, Groupon, or Uber.

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