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Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

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Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#61

Post by kuon »

ttt3ts wrote: post #56
kuon wrote: post #21

You can have a 100Gb uplink on a dedicated fibre for less than 1000$/month now. Which is insanely less than cloud bandwidth. Of course there are tons of other costs, but that alone can suffice to justify moving out of the cloud for bandwidth intensive app.

Yea, I call BS on 100Gb uplink for $1000. I have racked a lot of servers at different data centers. No way.

I am in Switzerland where you have 25Gbit/s for about 70$/month so I understand that this might be an exception. But even if it is 10 000$/month, it is still widely cheaper than cloud bandwidth.

https://www.init7.net/en/

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#62

Post by hackit2 »

discodave wrote: post #12

Meanwhile, from Q3 Amazon earnings: * AWS segment sales increased 19% year-over-year to $27.5 billion. That means AWS brought in $4.3 BILLION more dollars in Q3 2024 vs 2023. That's a huge amount of incremental revenue growth. If the net movement of workloads were out of the cloud, then it would have to show up in the results of Intel / TSMC / Equinix et. al. I just took a look, and Equinix quarterly revenue is $2.1B…

Here people like arguing their opinions as if they're facts instead of using evidence (public proof) to support their argument.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#63

Post by jms »

jimt1234 wrote: post #35
kjellsbells wrote: post #13

Kjell's Law: the cost of a platform eventually exceeds the cost of the one it replaced. But each cost is in a different budget. We seem to have replaced cooling and power and a grumpy sysadmin with storage and architects and unhappy developers.

I've never worked in a data center that did cooling and power correctly. Everyone thinks they're doing it right, and then street power gets cut - there's significant impact, ops teams scramble to contain, and finally there's the finger-pointing.

The first time we tested cutting the power back in the day, the backup generator didn't fire! Turns out someone had pushed the big red stop button, which remains pushed in until reset.

That would have been a major problem if we'd had a nighttime power outage.

After that we ran regular switchover testing :)

The other time we ran into trouble was after someone drove a car into the local power substation. Our systems all ran fine for the immediate outage, but the power company's short term fix was to re-route power, which caused our voltage to be low enough for our UPS batteries to slowly drain without tripping over to the generator.

That was a week or two of manually pumping diesel into the generator tank so we could keep the UPS batteries topped up.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#64

Post by merb »

packetlost wrote: post #45
Salgat wrote: post #38

Earlier quoted context omitted.

We went to cloud because 1) we only need 3 infra guys to run our entire platform and 2) we can trivially scale up or down as needed. The first saves us hundreds of thousands in skilled labor and the second lets us take on new customers with thousands of agents in a matter of days without having to provision in advance.

1) You may more than pay for that labor in cloud costs, but you can also pretty easily operate rented dedicated hardware with a 3-man team if they know how to do it, the tools to scale are there they're just different. 2) I don't know what your setup looks like, but renting a dedicated server off of Hetzner takes a few minutes, maybe hours at most. My personal opinion is that most workloads that have a load balancer…

With 3 people it’s basically impossible to build a ha storage solution that can scale to a certain amount - it’s also impossible to keep that maintained.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#65

Post by lemme_tell_ya »

denkmoon wrote: post #49

It doesn't seem to say in the article and it's not really discussed in these "LEAVING THE CLOUDS!!" articles, but what are these orgs doing for on-prem? Given the broadcom acquisition of vmware, rebuilding massive vsphere clusters like it's 2010 doesn't seem like a good long term play. Are they moving to kubernetes? Some other hypervisor?

Possibly some amount of Triton and Oxide

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#66

Post by coredog64 »

karmakaze wrote: post #22

It's a short simple post that comes down to this: > Weekly explains that “just running legacy applications in the cloud is prohibitively expensive,” highlighting how lift-and-shift approaches often fail to deliver expected benefits. Yes, if you have a mature business without active development at a scale where compute/storage costs is a substantial accounting line item, then it makes sense to run on hardware that doe…

Very large mature businesses that don’t see IT as a core function have probably outsourced management to a third party. There’s not much daylight between that third party’s margin and just paying a hyperscaler.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#67

Post by PittleyDunkin »

jsnell wrote: post #4

I don't know that 37Signals counts as a "major enterprise". Their Cloud exodus can't have been more than a few dozen servers, right? Meanwhile AWS is growing at 20%/year, Azure at 33% and GCP at 35%. That doesn't seem compatible with any kind of major cloud repatriation trend.

You can have multiple trends at once. Veteran cloud users leaving, international business onboarding.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#68

Post by coredog64 »

efitz wrote: post #40

There are certain workloads that have never been really economical to run in cloud. Cloud economics is based on multi-tenancy, eg if you have a lot of hardware that is sitting idle a lot of the time, then cloud may be economical for you as the cloud provider can share it between you and others. Cloud is also good for episodic use of expensive exotic systems like HPC and GPU fleets, if you don’t need them all the time…

S3 has two more cost saving dimensions: How long will you commit to storing these exact bytes and how long are you willing to wait to get them. Either of those will allow you to reduce S3 costs without having to chance data loss due to AZ failure.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#69

Post by m1keil »

merb wrote: post #64
packetlost wrote: post #45

Earlier quoted context omitted.

1) You may more than pay for that labor in cloud costs, but you can also pretty easily operate rented dedicated hardware with a 3-man team if they know how to do it, the tools to scale are there they're just different. 2) I don't know what your setup looks like, but renting a dedicated server off of Hetzner takes a few minutes, maybe hours at most. My personal opinion is that most workloads that have a load balancer…

With 3 people it’s basically impossible to build a ha storage solution that can scale to a certain amount - it’s also impossible to keep that maintained.

Can you give a ballpark figure of what scale you have in mind?

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#70

Post by mr_toad »

WaxProlix wrote: post #6
jsnell wrote: post #4

I don't know that 37Signals counts as a "major enterprise". Their Cloud exodus can't have been more than a few dozen servers, right? Meanwhile AWS is growing at 20%/year, Azure at 33% and GCP at 35%. That doesn't seem compatible with any kind of major cloud repatriation trend.

How much of that is what technologists would consider "cloud" (IAAS, PAAS) versus what someone on the business side of things would consider "cloud" - office365, google gsuite, etc?

I’ve worked with a few organisations that I’d call “late adopters” to the cloud, and it’s rare for them to use IAAS or even PAAS. It’s all SAAS and serverless, and while they all say they’re doing devops it’s almost always clickops.
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