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The Amazon Prime Day 2023 AWS Bill

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Re: The Amazon Prime Day 2023 AWS Bill

#51
> There’s the internal chargeback costs that AWS charges Amazon for services that would be subject to

Do they do this? I have asked some friends who are developers at AWS and both told me that they don't worry or even know what their usage costs. But that's just anecdote; perhaps their boss knows.

Re: The Amazon Prime Day 2023 AWS Bill

#52
post #11

Earlier quoted context omitted.

Important to remember that, before you could burst your infrastructure in the cloud, sites simply went offline in events like this. You took actively lost revenue in those cases.

Or you could just design your architecture to not perform trillions of database requests for hundreds of millions of sales. The listing data is almost static and should almost fit in RAM (the hot set probably does. Apparently Amazon has ~350M listings. A 24TB RAM server could give ~68kB/listing, and probably only a small fraction is hot). Since you'll need multiple servers anyway, you could shard on products and defi…

I think you're forgetting that Amazon doesn't have a 100% conversion rate...

Re: The Amazon Prime Day 2023 AWS Bill

#53

Earlier quoted context omitted.

Or you could just design your architecture to not perform trillions of database requests for hundreds of millions of sales. The listing data is almost static and should almost fit in RAM (the hot set probably does. Apparently Amazon has ~350M listings. A 24TB RAM server could give ~68kB/listing, and probably only a small fraction is hot). Since you'll need multiple servers anyway, you could shard on products and defi…

I think you're forgetting that Amazon doesn't have a 100% conversion rate...

I'm not. That's why I threw out 10M page views per 100k purchases. Maybe 1% is an overestimate of conversions, but I imagine a 48x multiplier to average traffic is an overestimate of peak traffic, so it balances out. It would be interesting to know the actual peak number of user actions/second though.

Re: The Amazon Prime Day 2023 AWS Bill

#54
post #26

Even if AWS treats Amazon like any customer the article is off by a factor of 30-60%. RIs for their RDS instances. Saving Plan for their EC2s. 1 or 3 year commit, no upfront vs all upfront, etc. A customer at the size of Amazon using AWS would have private pricing arrangement and an EDP.

Honestly, their EDP is probably effectively cost, set in stone to make sure that if the government breaks them up or something like that both systems are good.

Re: The Amazon Prime Day 2023 AWS Bill

#55
Funny how folks here and from the article are fixated in comparing the $102M vs the $12.7b. They somehow forget there are product, advertising, warehouses, transportation, shipping, labor, operation and other labor cost involved. You didn’t spend $102 to earn $12,700…

Re: The Amazon Prime Day 2023 AWS Bill

#56
post #51

> There’s the internal chargeback costs that AWS charges Amazon for services that would be subject to Do they do this? I have asked some friends who are developers at AWS and both told me that they don't worry or even know what their usage costs. But that's just anecdote; perhaps their boss knows.

I cant comment on individual teams or the business and accounting practices of Amazon.

I would ABSOLUTELY say that, at a minimum, every director or principal engineer needs to be familiar with costs and _should_ understand their P&L. Senior engineers and line managers probably/should have a passing familiarity or consideration. Individual random SDEs may not as its not their primary business function or deliverable and someone else is ultimately responsible.

Disclosure: Principal at AWS, opinions are my own.

Re: The Amazon Prime Day 2023 AWS Bill

#57
post #26

Even if AWS treats Amazon like any customer the article is off by a factor of 30-60%. RIs for their RDS instances. Saving Plan for their EC2s. 1 or 3 year commit, no upfront vs all upfront, etc. A customer at the size of Amazon using AWS would have private pricing arrangement and an EDP.

You wouldn’t commit for 3 years for increased resources of a single day.

True, but all of the usage is not net new and they'll have a base commit.

Re: The Amazon Prime Day 2023 AWS Bill

#58
post #51

> There’s the internal chargeback costs that AWS charges Amazon for services that would be subject to Do they do this? I have asked some friends who are developers at AWS and both told me that they don't worry or even know what their usage costs. But that's just anecdote; perhaps their boss knows.

[deleted]

Re: The Amazon Prime Day 2023 AWS Bill

#59
post #27

Amazon Prime Day event resulted in an incremental 163 petabytes of EBS storage capacity allocated – generating a peak of 15.35 trillion requests and 764 petabytes of data transfer per day. The main thing that strikes me is how (seemingly) inefficient everything is. What do they possibly need this amount of data for in selling stuff? Are they taking high-def video of every customer as they browse for something to buy?…

Yeah, those numbers struck me as well. At 375 million items sold, that's about 0.5GB storage and 2GB transfer per item .

Yes, but that's per item sold.

After looking at screen after screen of no-name garbage on Prime Day, I gave up. I suspect that there are tons of people like me. In other words, we only contributed to the numerator, not the denominator.

Re: The Amazon Prime Day 2023 AWS Bill

#60

Earlier quoted context omitted.

Hot take: Amazon's search UX is so terrible that it not only wastes near-endless amounts of customer time and patience, but their own bandwidth as well.

They’ve a/b tested it to death

"Hey, check this out! User engagement as a function of time spent on amazon.com is up 125% with the new build!"

Once a metric becomes a target for optimization, it often loses its value as an indicator of a larger goal. People who obsess over A/B tests rarely understand that.

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