Some tech is getting pricier and looking a lot like the older services it was supposed to beat. Namely video streaming, ride-hailing, and cloud computing.
the cloud is so ridiculously expensive that the company i work at which has a number of early Google employees and is backed by the Google mega rich is now looking to pull away from running everything in the cloud because it is simply untenable. And we’re in a goddamned hurry to shift everything to our own equipment in rented data center space before another insane jump in cloud pricing kills us off which is virtually guaranteed
I worked in a company where the dofus clueless CTO decided to transfer half of the data centers to the cloud to cut costs. I’ve since left the company, but I always knew this would happen.
Is this true for cloud in general or only for platforms like Google Cloud, AWS, etc. who offer managed services? What if you were using something like Hetzner or OVH where you only get the bare minimum cloud VPS and you have to bootstrap them yourself?
my best guess is monopoly rent… once you’ve moved all your stuff to the cloud you become dependent on them and they know that
once hundreds and thousands of companies do it the cloud providers gain a lot of leverage
i imagine there are some pretty hefty operating expenses they have to pay as well to operate at such an enormous scale, so their costs don’t necessarily decrease when they add more customers
Its monopoly rent, remember that these industries were propped up by VCs and ran on losses for a long time. So now its time for VCs to make a ROI, thus prices are higher than they should be.
the cloud is so ridiculously expensive that the company i work at which has a number of early Google employees and is backed by the Google mega rich is now looking to pull away from running everything in the cloud because it is simply untenable. And we’re in a goddamned hurry to shift everything to our own equipment in rented data center space before another insane jump in cloud pricing kills us off which is virtually guaranteed
I worked in a company where the dofus clueless CTO decided to transfer half of the data centers to the cloud to cut costs. I’ve since left the company, but I always knew this would happen.
Is this true for cloud in general or only for platforms like Google Cloud, AWS, etc. who offer managed services? What if you were using something like Hetzner or OVH where you only get the bare minimum cloud VPS and you have to bootstrap them yourself?
oh i think in general it applies to the big 3, but it may extend to others as well, but i’ve only seen the insane costs from AWS and GCP personally
Why is it very expensive? Monopoly rent practices? Supply-chain constraints? Something else?
my best guess is monopoly rent… once you’ve moved all your stuff to the cloud you become dependent on them and they know that
once hundreds and thousands of companies do it the cloud providers gain a lot of leverage
i imagine there are some pretty hefty operating expenses they have to pay as well to operate at such an enormous scale, so their costs don’t necessarily decrease when they add more customers
Its monopoly rent, remember that these industries were propped up by VCs and ran on losses for a long time. So now its time for VCs to make a ROI, thus prices are higher than they should be.