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Running costs for running a web app

cushionapp.com

31–40 of 225 posts

Re: Running costs for running a web app

#31
post #4

Heroku is without a doubt one of the more expensive options out there. SSL being billed per month? Yikes. SSL really should be standard.

I migrated from Heroku to OpsWorks a year ago and couldn't be happier.

Great to hear! My goal is to transition to AWS this year. I'll be sure to write about the cost differences.

Re: Running costs for running a web app

#32
I always find breakdowns like this interesting. Just to get a feel for what others are using, their reasoning, and to generalize what others are spending monthly/annually. With more breakdowns like this from more companies, I think it provides a great understanding of costs. It also can give people a good baseline for understanding what costs are at certain levels of users and with certain functionality.

While I understand that these numbers also give an opportunity for people to point out areas where there may be potential cost savings or opportunities to improve infrastructure, I am not sure generic comments of saying you are spending too much or too little, or I don't spend that much are beneficial. A few key pieces of information that would help correlate these numbers in my opinion are total users on each plan, monthly active users, and the average amount of data required for the users.

Just based off the Stripe numbers I would estimate that they have between 6000-7000 annual paying users (this number may actually be a little lower if the majority of users are paying monthly instead of annually). That does not include members that only trial the service, although I would suspect this number is small.

Long story short, every business has different requirements and usage. What works for one company with 6000 users may not work great for the another company with 6000 users. I just hate seeing people say that someone is spending too much without knowing all the details.

Re: Running costs for running a web app

#33
As some have said, this seems expensive. However, I would point out that the costs of using Heroku should be outweighed by the convenience and ability to focus on features. You are getting what you pay for here, the velocity you gain from not worrying about your infrastructure.

I do think that when you are first launching a startup, you should probably do everything as cheaply as possible, which probably means using a VPS or IaaS. As soon as your infrastructure becomes more complicated, you can use Heroku instead of hiring people to manage it for a while. Then see where your growth takes you -- you will probably find that eventually it makes more sense to hire a couple people to manage some IaaS or even renting racks and buying hardware.

As with all things in life, it really depends. I believe this particular configuration makes sense for companies who want to focus on product, not infrastructure -- at a cost of expensive hosting.

Re: Running costs for running a web app

#34

What are the strikethroughs for? My assumption is thing you aren't paying for anymore, but wanted to double check since not all have replacements.

The strikethroughs are for services I once used, but have since cancelled because I either moved to another service or no longer needed that service anymore. Early on, I paid for Code Climate, but realized it was an expensive non-necessity at the time. For services like Mailchimp, I moved my newsletter to Intercom once the spiked cost of Mailchimp didn't make sense to keep.

How about Baremetrics? What did you replace it with or was it not necessary?

Re: Running costs for running a web app

#35

This is an excellent breakdown, thanks. As others have pointed out you can make it cheaper here or there but I find it awesome that you can run your business without any dedicated IT resources a sysadmin/network/ops kind of person. Adding one employee might switch it from a nice side income to losing money.

Thanks! Fortunately, the app's usage is pretty casual—users check it a couple times a day, or sometimes week-to-week. Because of that, I haven't had too many issues with server load. Honestly, I could probably run it on a single server no problem, but it's good to have a backup just in case. I freelance alongside of this, so I'm trying to slowly make Cushion my full-time gig. Hopefully, I can make the final push this year.

Re: Running costs for running a web app

#36
post #4

Heroku is without a doubt one of the more expensive options out there. SSL being billed per month? Yikes. SSL really should be standard.

As far as I can tell, the cost of the SSL endpoint on Heroku is almost exactly the same as the cost of a separate Elastic Load balancer, which you need to terminate the SSL connection before it reaches your app. So Heroku is really just selling this feature at cost.

Re: Running costs for running a web app

#37
post #6

This seems ok given that the startup has generated approximately $60,000 in stripe revenue. I would try to reduce costs in those Heroku workers... $175/month seems steep.

Hi! I run Cushion. Moving off Heroku is definitely high on my to-do list. So far, since I'm a solo dev, I've taken the mindset of paying for convenience services that would allow me to spend more time working on the app. Now, I'm getting into the phase where I can start reducing these costs and transition to a system that doesn’t induce fear when I need to add another server. Right now, I have two web workers and two…

What prevents you from using ~~Docker~~Digital Ocean?

Re: Running costs for running a web app

#38

I can slash about 4000 of those dollars down to 600 by renting hardware to run those services on. Makes you responsible for your setup but if you are bootstrapping, you can find better first year uses for 3400 dollars I'm sure.

At the time, I was eager to build the app and focus on its features and getting it online. I don't know much about renting hardware, setting up a system, and scaling, so I was gladly willing to pay to make that easier on myself. The $3400 lost actually bought me a lot more of my own time, which I consider more valuable in the long run. I'd be interested in reading a blog post about how you'd slash the cost, if you ev…

Good analysis - this sounds like a smart strategy. Best of luck running Cushion!!

Re: Running costs for running a web app

#40
post #4

Heroku is without a doubt one of the more expensive options out there. SSL being billed per month? Yikes. SSL really should be standard.

It seems like Heroku's business model is to make it easy for startups to build on their platform and then bleed them dry of all their investment money.
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