Why SaaS prices are still going up when companies are spending less

Post by londons_explore » Sun, Sep 10, 2023, 8:24 PM UTC

dilyevsky wrote: post #9

londons_explore wrote: post #4

Earlier quoted context omitted.

Storage prices depend on the reliability you want. Someone like Google cannot ever lose data of any customer. So if you pay for 1GB of storage, they probably actually store 5GB of data or more for you. It will be redundantly stored within the datacenter across different racks, but also stored (also redundantly) in different datacenters in case of flood/fire. Theres probably a copy on tape incase of a catastrophic sof…

> So if you pay for 1GB of storage, they probably actually store 5GB of data or more for you The actual factor is most likely around 1.4-1.5x and for sure can’t be any more than 2.2x in this day and age. Dumbest possible implementation will be “only” 3x so no it’s nowhere close to 5gb Edit: looks like it’s public so i can actually tell you that google uses RS 3,2 which gives 1.5 replication factor. When i was there a…

Post by [deleted] » Sun, Sep 10, 2023, 8:26 PM UTC

cavisne wrote: post #21

hjhffyuu57 wrote: post #2

It would be interesting to see what the corresponding figures are like for on-prem, although they would be much more difficult to calculate and would vary wildly between companies. The only thing that really stood out to me was the Google storage price increase, which seems rather large, as in way out of line in comparison to our 2023 spend and 2024 budgeting. It would also be nice to see what exactly is meant by Saa…

GCS launched as an S3 competitor (with an S3 compatible API). So their pricing was basically copy pasted from S3. From the start though they offered more expensive to run features (a consistent list api, 1GBit transfer per file vs 100mbit for S3 at the time, Glacier-like storage with instant retrieval). I think this pricing jump is mostly pricing it at what it always should have been. Plus a bit of the now being so f…

Post by [deleted] » Sun, Sep 10, 2023, 8:27 PM UTC

dboreham wrote: post #38

This is complete nonsense, right? SaaS prices have nothing to do with input costs --- prices are plucked out the air (or from somewhere else...) based on some guess about what the market might bear vs aspirations for volume. Then, once the smoke clears, you jack the price up a bit in order to buy a new boat.

Post by [deleted] » Sun, Sep 10, 2023, 8:28 PM UTC

steveBK123 wrote: post #31

Long term rug pull on CTOs who thought the cloud would somehow be better, easier & cheaper. CTOs get lots of free credits, downsize their infra staffing. Start using the basic building blocks, but then of the basic building blocks (servers & storage) are marked up and expensive. Next, to find cost savings their org need to move deeper and deeper into alphabet soup of cloud vendor proprietary stack, at which point the…

Post by lowbloodsugar » Sun, Sep 10, 2023, 8:30 PM UTC

mozman wrote: post #13

hjhffyuu57 wrote: post #2

It would be interesting to see what the corresponding figures are like for on-prem, although they would be much more difficult to calculate and would vary wildly between companies. The only thing that really stood out to me was the Google storage price increase, which seems rather large, as in way out of line in comparison to our 2023 spend and 2024 budgeting. It would also be nice to see what exactly is meant by Saa…

I did a detailed price cost calculation of onprem vs AWS as I worked at a MSP. Our cost of compute and storage including DC construction over 10y was about half the cost of AWS. We also used cheap supermicro and had no service contracts or warranties we had on site staff. Their salaries were included. Small DC 2mw.