[HN Gopher] The battle of the computing clouds is intensifying
       ___________________________________________________________________
        
       The battle of the computing clouds is intensifying
        
       Author : acqbu
       Score  : 165 points
       Date   : 2021-12-14 12:18 UTC (10 hours ago)
        
 (HTM) web link (www.economist.com)
 (TXT) w3m dump (www.economist.com)
        
       | eole666 wrote:
       | > The situation is analogous to a century ago, when electricity
       | became an essential input
       | 
       | You can do nearly everything "the computing cloud" offers without
       | it : just use servers, install your services on it, manage it,
       | invest in more servers/ more powerfull servers if needed... Cloud
       | computing is not a brand new invention, it's just delegating the
       | server and services management to others... Whereas, a century
       | ago, electricity was actually an essential input.
        
         | martincmartin wrote:
         | Companies used to run their own electrical generators. That
         | seems analogous to running your own servers.
        
           | mschuster91 wrote:
           | > Companies used to run their own electrical generators.
           | 
           | ... and have the staff with experience and resources to keep
           | them running. These days, UPS maintenance is sourced out to
           | the cheapest bidder and testing is infrequent, with the
           | predictable result of shit hitting the fan at the exactly
           | worst time.
        
         | londons_explore wrote:
         | In the future, I can imagine cloud providers offering
         | discounted bandwidth from one AWS customer to another.
         | 
         | Then I can imagine SAAS companies offering discounts if your
         | API requests originate from AWS cloud.
         | 
         | Maybe even Amazon prime members will get free bandwidth from
         | their home internet connections into and out of AWS.
         | 
         | At some point, the whole lot becomes a walled garden, and being
         | outside it is more expensive if you need to use services that
         | are inside.
        
           | rmbyrro wrote:
           | Cost of SaaS or API prices are usually orders of magnitude
           | higher than their infrastructure marginal costs.
           | 
           | Although this idea makes practical sense, from a financial
           | standpoint I don't think there will be enough incentive.
           | 
           | Bandwidth savings in infra will represent <1% savings
           | relative to the SaaS/API price.
        
       | roody15 wrote:
       | This is good competition is needed to help with pricing. AWS and
       | other large cloud providers have an incentive to "lock" customers
       | in and raise prices.
       | 
       | There must be a pressure by competition to keep this incentive in
       | check.
        
       | qwertyuiop_ wrote:
       | There is one primary reason why large companies are migrating to
       | AWS Azure etc that most people seem to be missing here.
       | 
       | It's outsourcing the blame. This is the key to boardroom success.
       | When something goes wrong in their own data centers, the CXOs
       | need to shoulder the blame.
       | 
       | Large corporations outsource everything, including the guy who
       | cleans the copiers, copier not working, blame the maintenance
       | vendor.
       | 
       | Something went awry with the infrastructure, blame AWS
       | 
       | App development project went down the tubes? blame the
       | contractors & outsourcing companies.
       | 
       | The Cxo comes out blameless each time
        
         | streamofdigits wrote:
         | that is an argument I have seen before and it is generally
         | true: the core idea is for the corporate entity to operate a
         | riskless arbitrage where all risks are shouldered elsewhere,
         | ideally where they are less understood and thus underpriced.
         | 
         | the problem with applying this concept here is the hyperscalers
         | are not exactly a counterparty likely to underprice IT risks.
         | in any case is there any public evidence of this "blame
         | transfer" in action (pressumably with associated remedies)
        
       | jrochkind1 wrote:
       | > Mr Garman counters that the higher price of moving data off a
       | cloud ("egress" in the jargon) reflects the higher costs of that
       | exercise. Almost by definition, customers leave with more data
       | than they entered with.
       | 
       | Uh, they charge more per byte, that's not what's going on. I
       | don't know if that was AWS's Garman being deliberately
       | misleading, or the Economist journalist misunderstanding.
        
       | manishsharan wrote:
       | I ,for one, welcome our new IT overlords, the AWS/GCP/Azure. The
       | old overlords of IT, the IT infrastructure depts, were too slow
       | and bureacratic and lacked elasticity. For example, if I wanted
       | to spin up a few servers with Cassandra -- I would have to
       | undergo rounds of review for approval of a new technology then
       | work on requisitioning the h/w or VM, and figure out support
       | chain-of-escalation. Also somehow , on-premise VM were always
       | crashing or running out or disk space.
       | 
       | With the new overlords, I have to pass through fewer reviews (I
       | work in financial sector; we love review meetings and gates.) and
       | provisioning a service is as simple as a AWS/GCP/Azure url. And
       | tearing down stuff is easier. The old overlords of IT would be
       | pissed if we decided we did not need a h/w server and we would
       | have to fill out questionaires to determine how we could have
       | been so misguided and then I had to wear my dunce hat for any
       | meeting we would have for the next requisition.
       | 
       | I love the battle of cloud computing. With the big three, they
       | are still hold too much power. I look forward to the day when
       | Vultr, DigitalOcean, Ovh, Linode can get approved to be used in
       | my employer's IT stack. With Terraform or Kubernetes, I would be
       | able change our dev/qa/uat cloud environments at will and this
       | will force the Big Three to lower their prices even more.
        
         | 123pie123 wrote:
         | and what happens when your new overlords decide that your
         | version OS of choice is now EOL?
        
           | manishsharan wrote:
           | OS currency is a big deal for us in Banking. The Cloud vendor
           | maintaining the OS currency and patches will save us so much
           | headaches. Its entirely possible that version x of a custom
           | application requires version q of the OS but the Cloud vendor
           | is mandating version r of the OS. In this case we get to go
           | back to business and app teams and force them to either
           | upgrade their software or containerized or retire their app.
           | Without this stick, we would be stuck with apps untouched ,
           | not- maintained and vulnerable forever.
        
         | 8ytecoder wrote:
         | Not to mention, the upfront budget for hardware or servers were
         | passed to the team requesting a small portion of it if it's the
         | first team to do that.
        
         | jrochkind1 wrote:
         | It's interesting that they decided setting up a cloud server
         | did not require the same level of review. That does not seem
         | exactly like the result of a technical difference.
        
           | manishsharan wrote:
           | When you bring in a new technology or capacity to on-premise,
           | you would want to maximize the bang for the buck which means
           | that you want to review your roadmaps to see who else could
           | benefit from the new technology or capaciy. For Cloud
           | services, this is not really required. Also, there is a level
           | of trust with the Big Three meaning that we can trust that
           | they will be able to manage SQL,Cassandra etc with ease; this
           | IT departmens do not have the manpower bandwidth to keep on
           | adding new servers or services. Hence some of reveiws are not
           | really required.
        
           | Spivak wrote:
           | The difference is that your local IT team is overworked,
           | understaffed (yay IT is a cost center), and bears the full
           | deployment and ongoing monitoring and maintenance
           | responsibility.
           | 
           | In new cloud land you're essentially contracting out a team
           | at Amazon to handle all that. You can rent a team that is
           | dedicated to that one particular service. In cloud land
           | behind every service there is a whole team of people
           | dedicated to maintaining that particular service, in on-prem
           | land behind every service is a 1/20th of the capacity of your
           | IT team.
        
           | Aperocky wrote:
           | Because if you didn't need it you can just shut it down.
           | 
           | Lot harder to refund that new server that was just installed
           | on the rack.
        
         | hintymad wrote:
         | It's also about unreasonable productivity of APIs. EC2 (with
         | autoscaling groups) + VPC + S3 + SQS + DynamoDB can blow the
         | productivity of most IT department out of water. Let's face it:
         | most of engineers have no clue or stamina to build something
         | even remotely resembling S3 or SQS.
        
         | ip26 wrote:
         | Not to mention simple incentives. IT is frequently thought of
         | as a cost center. AWS is a selling product.
        
       | jillesvangurp wrote:
       | I would say this market is due for some consolidation. AWS has
       | basically has enjoyed a nice market share for the last fifteen or
       | so years. In recent years MS and Google have become credible
       | alternatives and in addition to that there are now numerous
       | smaller players that you could feasibly use as well.
       | 
       | The key challenges in this space are standardization of commodity
       | features, making the whole business of using any of these
       | solutions less complex, and driving cost down. This goes against
       | how the big three are making of course which is exactly through
       | vendor locking aggravated by complexity. Once you figure out how
       | to use this stuff, you have a lot of non portable stuff depending
       | on that vendor. Replacing that costs money and is never a
       | priority. That's why AWS stuff can be such a PITA to deal with.
       | It actually ensures customers can't move away that easily.
       | 
       | However, the common feature set shared by most of these cloud
       | hosting solutions (running vms, databases, docker, load
       | balancers, networking, etc.) is a combination of expensive to use
       | and still too hard to manage. So, the game for new players in the
       | market is being more convenient and less expensive to use.
       | Ultimately private cloud and the cost of getting started as a
       | PAAS provider getting lower means that this is a race to the
       | bottom. Most of the smaller providers already lean heavily on OSS
       | solutions.
       | 
       | The question is whether the big three can long term afford to not
       | support the emerging standard stuff. For example at least for me
       | all the convoluted proprietary AWS stuff is actually increasingly
       | a reason for me to avoid depending on them. It was great when
       | they were the only company with decent solutions but that is
       | increasingly less true.
        
       | robertlagrant wrote:
       | Either The Economist or I don't know what Snowflake is.
        
         | DangitBobby wrote:
         | I had that same thought at first, but I think they were trying
         | to do a tie in for enterprise SaaS. They mention Hashicorp as
         | well.
        
       | ThinkBeat wrote:
       | The choice of running in prem, or even changing cloud vendor is
       | diminishing.
       | 
       | Yes if you only use compute and storage moving is easy.
       | 
       | If you want scaling in AWS then move to Azure I think that would
       | involve a lot of changes (as it would the other way) I am not
       | sure how much of it Terraform can translate.
       | 
       | I would guess K8 can do this is a vendor neutral way but I am not
       | sure since I have never worked with it.
       | 
       | I do know for a fact that getting your devops pipeline set up in
       | AWS is really complicated. We ended up having to hire two "elite"
       | AWS consultants for 14 days to get it all working. I was not
       | involved directly in it, but my team had great need of the
       | finished pipeline. If we went with Azure we would have to do it
       | all over again. But most of our stuff is in .Net so getting it
       | all working o Azure would have been magnitudes better.
       | 
       | The more "premium"/ high level services one starts using the
       | ability to move on prem or switch cloud becomes harder and
       | harder. Which is of course the goal for the cloud vendors.
        
         | AtNightWeCode wrote:
         | To develop a canonical model over the infrastructure that can
         | be reused between cloud providers takes a lot of knowledge. My
         | experience from Terraform and Azure is that it is not in
         | general worth it.
        
         | pc86 wrote:
         | Speaking from experience, just because Azure is Microsoft
         | doesn't mean that it's point-and-click to get a .NET app
         | running on Azure, especially if you do anything non-standard in
         | startup. Just google "ANCM in-process failure" to see dozens -
         | hundreds - of out-of-the-box .NET apps that just refuse to run
         | in an out-of-box Azure compute/VM.
        
       | exdsq wrote:
       | My first job was IT support for on-prem systems and, as I battle
       | my containerized deployment scripts this morning, really miss
       | those days. Probably just nostalgia but I had named them all
       | after superheroes and it was just way more fun when you got to
       | spec a server and install it, fix them (physically) when they had
       | issues, and panic when the AC broke.
       | 
       | Edit: Also I was way more fit from climbing around a building all
       | day cabling stuff. Genuine question - does anyone know what sort
       | of IT jobs require physical work? I miss those days a lot!
        
         | VTimofeenko wrote:
         | > does anyone know what sort of IT jobs require physical work?
         | 
         | I have seen a few positions in the US for datacenter
         | technicians. Those positions had explicit requirements(probably
         | because of ADA) to be able to lift over X lbs as part of day to
         | day activities.
        
         | chickenWing wrote:
         | Get a job for Cisco or Juniper. You'll be moving and wiring up
         | a lot of physical routers.
        
         | marvinblum wrote:
         | Hetzner would probably be the perfect working space for you.
         | They build all of their servers by hand on custom racks. You
         | can move around in 14+ buildings in Falkenstein, manage cables,
         | fix servers, work on their cloud offering, ...
        
           | teloli wrote:
           | AND you would get to live in Falkenstein, one of the most
           | exciting places in Europe.
        
             | mellavora wrote:
             | which does indeed sound like a good home for servers named
             | after superheros.
        
         | jdavis703 wrote:
         | I did IT support for a federal agency headquartered between two
         | buildings with multiple floors and was on my feet all day.
         | About once a week I'd actually have to run as someone was
         | experiencing a time-critical hardware issue with only minutes
         | to spare, heh. I kind of miss it. But the pay is nowhere close
         | to what I make as a SWE.
        
           | exdsq wrote:
           | Haha that's the issue - I work as an SWE and it has killed so
           | many fun options purely because I can't imagine such a sharp
           | pay decrease.
        
         | throw1234651234 wrote:
         | Building crypto mining racks.
        
           | exdsq wrote:
           | That would be fitting, I've been a software dev in Crypto for
           | the last few years! Just tired of sitting on my ass all day
           | ha!
        
           | 2Gkashmiri wrote:
           | is it really profitable to get in like now?
        
             | throw1234651234 wrote:
             | What Nextgrid is saying is a common, incorrect stereotype.
             | 
             | "Is it really profitable to get in, like now?" Yes, but...
             | Long version: Yes, you will make your money back within 2
             | years almost guaranteed on a new mining rig. There is a
             | minimum cost to get in. For example, at a minimum, you will
             | need a good card at 3k+, which puts you at 3.5-4k just for
             | price of entry. However, you will make that back within a
             | year.
             | 
             | Now the heavy BUT:
             | 
             | 1. No one knows what will happen once ETH switches from
             | mining to proof of stake in 2022. Mining profits may go to
             | 0.
             | 
             | 2. If BTC price goes to hell, so do your profits in the
             | long run. This is price-risk, regulatory-risk, etc.
             | 
             | 3. There are heavy tax implications and a lot of
             | management. For example, you won't get the returns
             | mentioned if you don't properly account for equipment
             | costs.
             | 
             | 4. Once you want to make more than $10 a day, there are
             | heavy, heavy set up costs - cooling, proper power supply,
             | etc.
             | 
             | Finally, profitability of mining is back because China is
             | actively banning crypto mining, so other areas can compete
             | now.
             | 
             | "I don't think it was ever profitable unless your energy
             | prices can compete with what industrial-scale miners get in
             | favourable locations (right next to a power plant in an
             | area with too much surplus power, etc"
             | 
             | This is simply not true Nextgrid, see
             | https://whattomine.com/ for roughly-valid numbers. Note
             | that BTC is not anywhere on the GPU list - you do need
             | extremely expensive ASICs to mine BTC. You also need to
             | order them from China, pay a 25% import tax, and overall
             | risk quite a bit.
             | 
             | Final note - if you could get GPUs at cost or MSRP, you
             | would be in pure profit in less than a year. The problem is
             | that a $2000 GPU is marked up to about $3500 atm.
        
             | Nextgrid wrote:
             | Due to how the difficulty system works, the real-world
             | price of the reward for mining will always be equivalent to
             | the cheapest energy price in the world. If the price
             | suddenly increases, more miners get in, which pushes the
             | difficulty up and now you have to expend more energy for
             | the same reward - similarly if the price drops, miners who
             | can no longer make a profit go offline, lowering the
             | difficulty - in the end it's an equilibrium.
             | 
             | I don't think it was ever profitable unless your energy
             | prices can compete with what industrial-scale miners get in
             | favourable locations (right next to a power plant in an
             | area with too much surplus power, etc).
        
         | adamcharnock wrote:
         | Start a rural Wireless ISP. That's what I did. Network cables
         | and chainsaws :-)
        
           | exdsq wrote:
           | That sounds awesome! Can you share any more info on that?
        
         | imadethis wrote:
         | COVID has probably changed this, but networking jobs tend to
         | require a lot of racking and cabling work, especially if you're
         | fitting out a new work area. Even with the majority of your
         | infrastructure moved to the cloud, you'll still need APs or
         | Ethernet jacks wired into a LAN for the end users.
        
       | nickbauman wrote:
       | Surprised Cloudflare was mentioned so late in the article and
       | almost a footnote. I think that's not representative of its
       | impact of their strategy on the industry.
        
         | handrous wrote:
         | Judging just from the headline, I assumed the article would
         | _mainly_ be about Cloudflare 's entry into that market. The
         | whole point of their strategy has been to position themselves
         | as the foremost middle-men of the Web and then start eating all
         | the service providers "behind" them, including and perhaps
         | especially cloud hosts. They've set everything up and now
         | they're executing on that plan, and things are starting to get
         | interesting.
        
       | 1cvmask wrote:
       | An article that regurgitates Gartner talking points is a tainted
       | one to begin with. Gartner even famously said that Apple should
       | quit the hardware business:
       | 
       | https://www.zdnet.com/article/why-does-the-it-industry-conti...
       | 
       | https://www.horsesforsources.com/gartner_fail_automation-AI_...
        
         | klausjensen wrote:
         | Twice in my career I have been involved in evaluating
         | enterprise products for a large corporation - and part of that
         | process was looking at Gartner reports.
         | 
         | The Gartner reports were complete and utter garbage, filled
         | with factual errors. Looks like they were written by interns,
         | regurgitating marketing material - completely removed from
         | reality.
         | 
         | Since then, whenever I see somebody mention a Gartner report, I
         | immediately dismiss that part of the argument.
        
           | bsenftner wrote:
           | Can confirm. Was a developer for 20 years, got an MBA 20
           | years ago and have been dismayed by the quality of Gartner
           | reports. Worthless for anyone with experience, and dangerous
           | when used to guide the non-technologist. (Yes, I've been
           | developing for 40+ years.)
        
             | greedo wrote:
             | But mgmt LOVES Gartner reports. It helps them avoid/shift
             | blame when a purchasing decision goes awry. The first
             | question our VPs ask about a new technology is "Is this
             | %VENDOR% in the Magic Quadrant?"
        
           | TheRealDunkirk wrote:
           | I am convinced that Microsoft underwrote them to boost
           | Windows and cast FUD at everything else in the 90's, and
           | they've never recovered their disingenuous ways. What annoys
           | me most are the market share reports, implying that Microsoft
           | owns the entire computing world. They don't. For personal
           | use, I'd say Apple has broken into the majority. I'd pay
           | money out of my own pocket to see PC vs Mac sales numbers
           | with corporate purchases removed, rather than the same report
           | they've published every quarter for 20 years now.
        
           | bachmeier wrote:
           | Gartner has a long history of putting out garbage. Some
           | called them anti-Linux, but I was always in the camp that
           | they were just writing crap for large quantities of money and
           | the people paying wouldn't know the difference. This story
           | from 1999 is surprisingly still up: http://www.cnn.com/TECH/c
           | omputing/9910/22/gartner.linux.idg/...
           | 
           | > The second report ("1999 OS forecast: The Linux face-off")
           | projects market share in server dollars for the next few
           | years. This one even contains a pretty graphic. The Gartner
           | Group finding is that Linux will fade from the scene
           | following the release of the first service pack for Windows
           | 2000.
           | 
           | > The third report ("Red Hat's future: Boxed in") concludes
           | that Red Hat will fail to overthrow Microsoft by 2004, and
           | suggests that Red Hat needs to find a more viable business
           | model.
        
             | marcosdumay wrote:
             | They write what their partners ask them to.
             | 
             | If you get a report from them on how the pitfals of setting
             | Oracle's Spatial, it's probably good. If you get a cost
             | benefit comparison of Oracle and Postgres, it's certainly
             | trash. (Who am I kidding? They still insist Postgres
             | doesn't exist.)
             | 
             | That said, none of the documents are worth the price you
             | pay and the hassle of interacting with them.
        
         | Spooky23 wrote:
         | Gartner is fine if you understand what they are.
         | 
         | Basically analysts mash up what vendors and customers tell them
         | what they think. They have conferences with large enterprise
         | customers and vendors sponsor those conferences. So there's a
         | element of indirect pay to play. Many companies use them to
         | review contracts as well, so they know what kinds of deals are
         | out there.
         | 
         | If you expect to understand technology from Gartner reports,
         | that is dumb. But if you want to understand the _market_ and
         | offerings for large commercial /gov enterprise customers, they
         | are a great resource. If you are a startup, you should not pay
         | any attention to Gartner unless you are selling in that space.
         | 
         | In the case of this topic, the information that's key to
         | understand is that Gartner is getting feedback that their
         | customers are adopting cloud services, but are seeking to
         | optimize the spending, including with some of the smaller
         | players in niche areas.
        
           | marcosdumay wrote:
           | > But if you want to understand the market and offerings for
           | large commercial/gov enterprise customers, they are a great
           | resource.
           | 
           | They are pretty shitty for that too. They only get anything
           | passable if you are after the offerings of the specific
           | companies that pay them for the publicity.
        
       | CraigJPerry wrote:
       | https://archive.md/meT9E
        
       | jamesliudotcc wrote:
       | Also, security. Has anyone noticed that all of the big ransomware
       | cases have been for on-prem servers, not cloud?
        
         | betaby wrote:
         | Not really. On other side news like 'my AWS account racked
         | 40000$ while I was asleep (because of the crypto-miners)' make
         | to the front page way to often.
        
       | asimpletune wrote:
       | I wonder when there will be cloud co-ops?
        
         | praptak wrote:
         | The other direction is to use the commercial clouds but
         | aggressively defending their status as a commodity. Have VMs at
         | multiple providers and move your load between them as needed.
        
         | streamofdigits wrote:
         | This. Turn the "cloud is somebody else's computer" on its head
         | and own part that computer.
         | 
         | Why not "own" AWS, GCP, Azure etc.? Because you can't. They are
         | part of conglomerates that come with a moral baggage that is
         | too heavy for some.
         | 
         | ps. No "hyperscaling" ability required. The idea that business
         | activity is either complete dominance or death is part of that
         | unfit-for-purpose mentality.
        
           | Layke1123 wrote:
           | I do actually own shares in some of those companies. That's
           | kind of the point. You can own the internet, and that's
           | before even "Web 3".
        
         | helpfulmandrill wrote:
         | Would be much better than getting locked in to a company you
         | have no control over.
        
         | rambambram wrote:
         | Cool idea, then we can call it 'the internet' again.
        
           | streamofdigits wrote:
           | its not exactly the same. there are probably significant
           | efficiencies (energy, security etc) in provisioning and
           | sharing "cloud" hardware in reasonably large chunks.
        
             | rambambram wrote:
             | You are right, but I saw some striking similarities, and
             | needed to joke about it.
        
         | pjkundert wrote:
         | Now: https://holo.host
         | 
         | Ready for testing and pre-release R&D.
        
           | vgel wrote:
           | IMO, an ideal co-op cloud host wouldn't have a bunch of
           | complicated p2p junk. Just a good ol' datacenter and people
           | to operate it, with the cost and governance shared by the
           | organizations running workloads on it.
        
           | 4ggr0 wrote:
           | What's your connection to Holo? You seem to mention them a
           | lot.
        
             | pjkundert wrote:
             | Yes, I do; sorry about that! They seem relevant, a lot...
             | 
             | I was on the development team for a couple years; now, I'm
             | independently developing some technology on the platform.
             | I'll announce it soon, I hope.
             | 
             | With the recent AWS outages, and systematic de-platforming
             | of some legal businesses, there seems to be a growing
             | realization that dependence on centralized hosting
             | platforms is ... dangerous.
             | 
             | Holo / Holochain seems to provide a unique solution to some
             | of these problems.
        
               | jatone wrote:
               | pure FUD. bugs happen decentralized systems can be even
               | more problematic to resolve issues in due to their
               | decentralized nature and the usual requirement that fixes
               | be deployed system wide.
        
       | awinter-py wrote:
       | > listing in detail the cost of every single service it has used,
       | from bandwidth in India ($0.01 per request to its website)
       | 
       | what does this mean
       | 
       | requests != bandwidth. are they paying a penny per request?!
       | that's a lot. or is their website several gigabytes? or are
       | indian CDNs expensive?
       | 
       | highly suspicious of economic news service that doesn't
       | understand the numbers it prints
        
       | revolvingocelot wrote:
       | >Ms Wang and Mr Casado have suggested that firms should think
       | about building their own private clouds to keep costs down
       | 
       | Yeah I distantly remember "on prem", too. Does _everyone,
       | everywhere_ really need to be equipped to hyperscale at a moment
       | 's notice? Wouldn't it be better not to be beholden to a megacorp
       | that serves you with 30 pages of opaque billing for business-
       | critcal functionality? Doesn't hiring external consultants to
       | manage your fucking cloud infrastructure seem like sort of a risk
       | as compared to keeping the services-wrangler in-house?
       | 
       | ...I don't have an MBA, so these are half-serious questions. If
       | anyone can chime in with (at _least_ ) a half-serious answer, I'd
       | halfway appreciate it. I understand that The Economist is the
       | voice of global capital, and global capital has decided that
       | there's money in them thar clouds, but still!
        
         | api wrote:
         | You have to run the numbers for your specific company, expected
         | scaling behavior, compute work load, and expected system
         | administration overhead and compare all scenarios.
         | 
         | I will say that if your work load is relatively fixed in
         | magnitude and _especially_ if it 's bandwidth intensive, you
         | can probably beat the "big cloud" providers by at least an
         | order of magnitude. If it's extremely bandwidth intensive you
         | should never consider mainstream cloud as outbound bandwidth is
         | absurdly overpriced... like 1000% markup or even more. I can't
         | exaggerate how insane bandwidth pricing is.
         | 
         | If you are just prototyping something, your work load is highly
         | elastic, or your product is rapidly evolving, the flexibility
         | and outsourced sysadmin of cloud will probably make sense.
         | 
         | Edit:
         | 
         | There are edge cases too. If your work load is, say, _inbound_
         | bandwidth and storage intensive, AWS might be great since S3 is
         | cheap and inbound bandwidth is free. Just keep in mind that you
         | might pay a lot for egress if you ever need that data out. Will
         | you?
         | 
         | Run your own numbers and be detailed!
        
         | dagw wrote:
         | Big corp financing is weird, and IT is often its own cost
         | center responsible for its own budgets. This means that every
         | time my department asks IT to do something for us they send us
         | a bill. And that bill is always several times more than going
         | to an external provider. At a place I worked, hosting in-house
         | would for example cost a minimum $150/server/month for
         | something with the same spec/performance that would cost
         | $20/month on AWS. It could also take up to 10 days to get that
         | (virtual) server set up. As a project owner and someone
         | responsible for my project/department budget using an external
         | cloud over in-house hosting makes rational, economic sense
         | 
         | Building up an IT infrastructure that can provide services at
         | roughly the same quality and cost as AWS takes a large
         | investment in talent and infrastructure. And many companies
         | don't see the value in making that huge upfront investment for
         | something they might not need. Better to start with AWS, and
         | once you get to the point where you can lower your costs by
         | 50-70%, then start looking at moving in house.
        
           | mistrial9 wrote:
           | > Building up an IT infrastructure that can provide services
           | at roughly the same quality and cost as AWS takes a large
           | investment in talent and infrastructure
           | 
           | no, you missed an important point here.. no one, at any
           | scale, has been able to compete directly with AWS on the
           | combination of service, scale and cost per unit.. its
           | intensely competitive
        
         | gautamdivgi wrote:
         | I have worked on reliability for some private OpenStack
         | deployments, on-prep K8S deployments. Views are my own and
         | don't reflect on any open source community or company.
         | 
         | To operate a production cloud you need expertise at all parts
         | of the stack. This includes network, kernel, maybe firmware,
         | orchestration, etc. You also need adequate planning where your
         | on-prem data center teams continuously upgrade your
         | hardware/firmware and add capacity. From an organizational
         | perspective this is an entire VP or SVP level organization
         | depending on where you are.
         | 
         | Operating large infrastructure is hard. If it's not your core
         | competency there is really no point in dealing with it. Either
         | way, it takes enormous effort to hire and keep a team skilled
         | to operate infrastructure. You will lose your team to big-tech
         | eventually.
         | 
         | You don't need external consultants to manage your cloud
         | infrastructure. Your existing engineers can skill up to use it.
         | Public cloud will commoditize what typically takes a lot of
         | time to plan for capacity, DNS, networking, scaling, etc.
         | 
         | In short - its prioritizing speed of execution over everything
         | else. The opaque billing is just cost of doing business. But
         | unless tech is your core competency, opaque billing is much
         | easier to deal with than all the other situations that come up
         | with managing and maintaining your own infrastructure.
        
         | arcbyte wrote:
         | It's not about hyperscale, it's about time to market.
         | 
         | Traditional corporate datacenters were dogshit when it came to
         | provisioning new resources for business capabilities.
         | 
         | In today's world, we need the ability to spin up and down
         | deployments very quickly. We don't need huge numbers of
         | resources, just fast response.
        
           | AnIdiotOnTheNet wrote:
           | > In today's world, we need the ability to spin up and down
           | deployments very quickly.
           | 
           | Do you really? In my experience, admittedly outside of SV,
           | pretty much nobody needs that.
        
             | handrous wrote:
             | It's a need born of our tooling. The only way to stay sane
             | is to operate _extremely_ simple services, or to put every
             | service in its own container (or VM) that can be torn down
             | and re-created automatically. The result is a need for one
             | or both of: excellent container deployment tools; fast  &
             | easy ways to spin up "a new machine" (a VM) on demand.
        
             | arcbyte wrote:
             | Fortune 500 companies have hundreds of internal apps that
             | each have their own stack. Multiply 2 or 3 for lower
             | environments.
             | 
             | At that scale in a single company the ability to provision
             | verticals weighs heavily in architecture and design
             | choices.
             | 
             | "Should we spin this new feature out as a microservice or
             | fold it into an existing app so we don't have to wait weeks
             | and do crazy cost accounting for new environments?" And the
             | answer has follow-on effects because now it has to be
             | accounted for in a specific teams' backlog and we encounter
             | yet more waiting.
        
             | zbentley wrote:
             | I think this is a common need, even in smaller
             | organizations. Spinning up/down deployments doesn't imply
             | you're doing it in response to scale needs (most orgs don't
             | have those); often it means you're simply experimenting
             | with new tools or new product offerings. Having the ability
             | to do that without waiting for infrastructure provisioning,
             | and having the ability to only spin up the resources you
             | need to see (for example) if a given version of a web
             | framework can run your site well, or of a new database
             | meets your needs, can be a significant value add.
        
               | AnIdiotOnTheNet wrote:
               | > often it means you're simply experimenting with new
               | tools or new product offerings.
               | 
               | That only makes sense to me in the context of a business
               | being an IT shop to begin with. Most businesses aren't,
               | and their new product offerings require factories and
               | dies and labor and materials. Besides which, the problem
               | of provisioning is entirely overblown for this scale of
               | business. I can spin up new servers all day on our on-
               | prem vSphere cluster.
        
               | dagw wrote:
               | _sense to me in the context of a business being an IT
               | shop to begin with._
               | 
               | Lots of businesses outside of 'IT shops' use computers. I
               | currently work in Civil Engineering and more and more of
               | our product and service offerings have an IT/Online/Web
               | based component which involves setting up some sort
               | server.
               | 
               |  _I can spin up new servers all day on our on-prem
               | vSphere cluster._
               | 
               | I what price? At my old job an on-perm vSphere 'machine'
               | cost my department a lot more than what AWS was charging.
        
               | AnIdiotOnTheNet wrote:
               | We've had the same vSphere cluster for 5 years now. I
               | forget what it initially cost, but over the timespan in
               | question I think it would be very difficult for Cloud-
               | anything to cost less. Hell, the licensing for the
               | software we use to do business costs an order of
               | magnitude more.
        
             | dagw wrote:
             | I work in a very boring industry very far away from SV and
             | spinning up and down machines for doing calculations and
             | analysis is a godsend. I have a 'cluster' of 6 machines
             | with 128 GB of RAM each set up and ready that I can start
             | up with a script and only pay for the less than 200 hours a
             | year I actually need them. Sometimes however I need 256 GB
             | of RAM so I just change a parameter in my script and,
             | magic, I have 256 GB of RAM. For other workloads the
             | optimal setup might be 100 1 core machines with 2 GB each.
             | So I type some commands, and now I have that instead.
             | 
             | And since it's my 'private' cluster I don't have to worry
             | about queuing my jobs and waiting for the machines to be
             | free. There is no way my department would have bought me
             | those machines as physical hardware.
        
           | sgt101 wrote:
           | Also experience. My team has been doing cloud deployments for
           | the last 18mths, now we are on a gig at a company that has
           | onprem. In theory the onprem infrastructure is comparable to
           | cloud (K8's, GPU's, HDFS, Kafka) but the reality is that to
           | get a set of K8's pods for a release has taken 2 weeks, 10+
           | meetings (calls) countless messages and 40+ emails.
           | 
           | And the ones we got on Friday were wrong (we asked for 3 *
           | 16GB ones + 1 * 2GB, we got a 16GB project container with 4GB
           | pod limits).
           | 
           | For our hadoop request - yes it got provisioned in >8hrs
           | (mostly I think because no one is using it) but none of the
           | access instructions work and everyone who has used it is
           | mysteriously unavailable - so we can't access it.
           | 
           | Compare and contrast to self service from _any_ cloud.
           | 
           | Why : well it's demand management. If you do self service and
           | say "pay for what you want" then IT's costs bloom and the CIO
           | is shot. If you do that in a cloud scenario then Cloud costs
           | bloom and the CIO says "you guys have spent your money
           | badly". This means that you need police and you need people
           | who you ask to give you what you need if they are happy.
           | These people obstruct you and then get things wrong.
        
             | mfer wrote:
             | You bring up some great points. There are two that I see.
             | 
             | First, there are internal processes. All too often they end
             | up needlessly slowing velocity. This isn't a technology
             | problem but a people problem. Using a public cloud enables
             | people to circumvent these issues, in some cases.
             | 
             | Second, there are costs. What does it cost to give someone
             | the features they ask for in the time they want it? This is
             | a requirements, design, time, and cost problem.
        
               | sgt101 wrote:
               | Yes - thinking about it, it's a market failure.
               | 
               | Basically small markets (internal IT) can't sustain the
               | investment to support the requirements design time cost
               | issue - while the public cloud folk can say "any colour
               | you like so long as it's black" and there are enough
               | takers to pay for it all.
        
           | benjaminwootton wrote:
           | I have worked with hundreds of companies moving to AWS, and
           | believe that this is the answer.
           | 
           | People are investing in cloud because its faster, more agile
           | and better, not because it's cheaper.
           | 
           | The top line looks expensive, but if you then do the correct
           | analysis on the cost side of the equation (taking out staff
           | costs and DC costs) then I think it is either close or in the
           | black from a cost perspective.
           | 
           | If the business case was really bad, I don't think we would
           | see the rapid uptake we have seen.
        
             | hectord wrote:
             | If you think from an economic standpoint, Amazon should
             | price AWS only a bit cheaper than the on-prem options. It's
             | a way to maximize their profits.
             | 
             | Then you have competition (GCP, Azure, Alibaba) which will
             | tend to lower the price, but for now the cloud industry
             | grows. Their goal is to attract new customers who didn't
             | use the cloud before.
        
           | deepstack wrote:
           | have developed on both AWS and non AWS server and db. There
           | is no deference now days. Depending on if you want to hire
           | the right people with the right skills is another thing.
        
           | hong_kong wrote:
           | People also seem to be overlooking the benefits of downward
           | optionality - you effectively transform a fixed cost (servers
           | and staff to run them) into a variable one, that you can flex
           | down cheaply (no long-term leases or redundancy payments). It
           | lets you test things out (e.g. entering a new market) and
           | cheaply wind them down if they don't work out.
        
         | dayofthedaleks wrote:
         | Often it's an OpEx vs CapEx play. Also large orgs crave
         | treating staff as interchangeable parts and IT hiring is
         | thorny. Throwing too much money at the problem can be
         | preferable.
         | 
         | Enterprises would rather not maintain inhouse infrastructure
         | for many of the same reasons they engage MSPs despite
         | persistently shoddy services.
        
         | TheRealDunkirk wrote:
         | It depends on who's running your company. The bog-standard
         | MBA's in middle management love to minimize capital outlay,
         | preferring to expense everything possible. Sure, there are tax
         | advantages, but it becomes a rule-of-thumb in most Fortune
         | 500's, and winds up infecting IT as well. What a lot of blue
         | chip companies STILL haven't grasped is that IT is as
         | strategic, differentiating, and important as any custom machine
         | they can design, build, and install on an assembly line, and
         | the software engineers, as much or more, important as the
         | product engineers.
        
         | tw04 wrote:
         | I've mentioned it before and will again: AWS spent a decade
         | openly and privately advertising how much "cheaper" the cloud
         | was. How economies of sclae meant you'd save boatloads of
         | money. Except, it was never true. You will potentially save
         | money if you're just starting out and have no idea if your idea
         | will be successful. A massive capital outlay is difficult and
         | stupid at that point. You will also potentially save money if
         | the tool you use to make money is something you can easily
         | scale up and down, and actually DOES scale up and down. IE: I
         | host a fantasy football stats app and every Monday night,
         | Thursday night, and all day Sunday I've got millions of users,
         | and thousands the rest of the week.
         | 
         | If you don't meet those criteria, unless you are absolutely
         | horrible at negotiating with your vendors, you aren't saving
         | money going into the cloud. I don't care that "datacenters are
         | expensive to build". If you are large enough to need to build
         | your own datacenter instead of renting floorspace for pennies
         | on the dollar from Switch or Equinix (although Equinix is kind
         | of pricey) or Windstream or _insert provider_ - then the
         | datacenter is a rounding error in your 10-year IT budget.
         | 
         | The problem is "I moved company XYZ to the cloud" is now a
         | requirement for an IT exec to show up to the country club on
         | Saturday. So whether it makes any fiscal sense at all, the
         | board wants to know "what our cloud plans are" and most execs
         | are more than happy to oblige in order to pad that resume. In
         | my experience, most of them leave long before the bill comes
         | due, and people start asking why the IT budget quadrupled in 3
         | years. The best part is, most of these companies can't pass
         | along that increased cost to end-customers like a Netflix can
         | because they aren't actually making money on the apps they're
         | hosting in the cloud, those are all internal business facing
         | apps.
        
           | aenis wrote:
           | Wholehartedly disagree. I've been in large scale IT for 20+
           | years, working for deep pocketed companies. The costs of
           | running old school IT with on prem data centers were orders
           | of magnitude higher vs. what we pay for well architected
           | serverless solutions these days. I remember having a
           | $30MM/year line item for Oracle alone, running on expensive
           | hardware that was sitting idle 90% of the time. Time sharing
           | expensive hardware is the way to go.
           | 
           | Another thing is costs of building something new. In the old
           | world it would mean doing the math on resource needs now and
           | in the future, since adding Hw meant capital expenditure. No
           | such problem now and its easier to get started, see if it
           | works, and scale or kill early.
           | 
           | And of course as others have mentioned, keeping it all
           | running requires expensive expertise. Esp. now with the
           | internet that looks like automated wild west. You cant
           | release a service without it being auto-probed and auto-
           | attacked within 2-3hrs.
           | 
           | Nope. With the cloud, the costs have went down for any large
           | coMpany, even those that just moved the old crap to VMs
           | running on someone elses hw.
        
             | darksaints wrote:
             | > I remember having a $30MM/year line item for Oracle alone
             | 
             | I think I found your problem...
        
             | nojito wrote:
             | >Nope. With the cloud, the costs have went down for any
             | large coMpany, even those that just moved the old crap to
             | VMs running on someone elses hw.
             | 
             | Are you implying that there isn't idle cloud hardware?
        
               | dagw wrote:
               | If a cloud machine is idle is you can shut it down and
               | stop paying for it.
        
               | acdha wrote:
               | There is, but there's less if you're using managed
               | services where possible and it's visible in a way which
               | wasn't true for many large organizations. I can go into
               | any cloud provider's console and see a detailed breakdown
               | of what I'm paying and why, and how much of it is
               | over/under-utilized, but getting that same report from an
               | enterprise IT department is usually a project.
        
           | slaymaker1907 wrote:
           | Are you also factoring in that you often need 2+ DCs for
           | redundancy? That seems like a lot of operational difficulty
           | unless your company already had a physical presence in
           | multiple locations.
           | 
           | I know there are also a bunch of requirements for where you
           | can store user data these days due to privacy regulations.
        
           | manigandham wrote:
           | The money is not the issue. Cost is not the same as value.
        
             | mfer wrote:
             | > The money is not the issue.
             | 
             | Money is COMPLICATED and THE issue.
             | 
             | Money is complicated because you have income and expenses.
             | Time to market and velocity can help you get more income.
             | This needs to be balanced by expenses.
             | 
             | When you're growing or your needs are uncertain than a
             | hyperscaler can help you get moving quickly. This aids in
             | time to market. But, you do this at a cost. Hyperscalers
             | cost more than running it all yourself.
             | 
             | If your workloads are steady state or changing at a
             | predictable rate than it can be cost effective to run your
             | own infrastructure.
             | 
             | There are other elements to all of this such as global
             | location of hardware compared compared to end users.
             | 
             | Money is the issue because companies are in business to
             | make money. Sometimes companies take a loss now in order to
             | make money later but it's always about the money.
        
             | Closi wrote:
             | Cost is a key component of value though.
        
             | tw04 wrote:
             | >The money is not the issue.
             | 
             | Money is ALWAYS the issue. Whether you can pass along
             | increased cost to your customers or not is entirely
             | dependent on what your business is and the competitive
             | landscape of it. I don't care how "agile" the cloud makes
             | you, if your cost of IT is more expensive than the revenue
             | you bring in, you're bankrupt. It's the running joke around
             | here about people who build autoscaling k8s based
             | infrastructure for a site that could be hosted on a
             | $5/month VPS with even a little bit of tuning and caching.
             | Complexity for the sake of complexity is called stupidity
             | unless you're doing it as part of an educational
             | experience. Going to production with needless complexity is
             | a great way to ruin a good idea.
             | 
             | >Cost is not the same as value.
             | 
             | I guess it's a good thing I didn't state that cost is the
             | same thing as value?
        
               | exdsq wrote:
               | There's more to it than just the tech and what is
               | cheapest though. Like risk management. Cost might be
               | higher for a less-risky thing.
        
               | manigandham wrote:
               | What does that have to do with the cloud? A company where
               | the _" cost of IT is more expensive than the revenue"_ or
               | has _" needless complexity"_ is making bad decisions and
               | will execute poorly whether it's cloud infrastructure or
               | internal systems.
               | 
               | But if you need a server then (in most companies big and
               | small) it's far easier to spin up a VPS in the cloud than
               | deal with internal IT.
               | 
               | > _" I didn't state that cost is the same thing as
               | value?"_
               | 
               | You're arguing over cost, but the cloud is often much
               | greater value compared to traditional IT. Spending 2x for
               | 5x more value is a valid decision. If it doesn't work in
               | your situation then don't do it, but it's not the same
               | answer for everyone.
        
               | londons_explore wrote:
               | > build autoscaling k8s based infrastructure for a site
               | that could be hosted on a $5/month VPS
               | 
               | I think the goal is that it should be the same amount of
               | engineering time to set up both options, and both should
               | cost $5 per month.
               | 
               | Today, that is broadly untrue. Although a few niches like
               | appengine offer this.
        
               | devoutsalsa wrote:
               | It's all fun & games until you can't make payroll.
        
               | pm90 wrote:
               | If we're discussing major corporations, they are willing
               | to pay a premium for predictability and reliability of
               | service. Cloud vendors provide just that: if you want
               | more resources, you can scale up until you hit capacity,
               | then you can call the account manager to increase it.
               | Very little downtime (except for the occasional outages).
               | All of these are known processes.
               | 
               | With operating your own DC, you have to hire really great
               | people and hope they don't fuck up. You have to plan much
               | in advance for capacity changes. It's very much possible
               | that something goes wrong in your compute infrastructure
               | and simply nobody in your team has the expertise to fix
               | it. Put it another way: can you pay/hire the same kinds
               | of engineers that work at AWS/GCP? If not, cloud is the
               | safer route. Cost does matter, and this is why companies
               | sign multi year contracts to get discounts. But _business
               | continuity_ is critical.
        
             | sharklazer wrote:
             | No, but it can make value go negative. Money is always the
             | issue. When isn't the issue of a private business not
             | ultimately money?
        
           | opportune wrote:
           | The problem is not just the datacenter itself but 1. all the
           | personnel needed to operate the datacenter/private cloud 2.
           | the lack of agility when everything needs to go through
           | internal IT provisioning (at some companies this is a huge
           | bottleneck).
        
           | prpl wrote:
           | A few things are relatively cheap:
           | 
           | Compute on preemptable VMs/spot instances is cheaper in
           | cloud.
           | 
           | Object storage, if you would have required a vendor support
           | contract on prem, up to a PB or so.
           | 
           | managed kubernetes, if you would have required a vendor
           | support contract on prem.
        
           | ec109685 wrote:
           | Fantasy football is actually interesting in that it happens
           | "off hours". So if you are a company that has an "on hours"
           | business, running Fantasy Football is free if you utilize
           | multi tenant hardware.
        
             | handrous wrote:
             | > Fantasy football is actually interesting in that it
             | happens "off hours".
             | 
             | I entirely associate fantasy football with working hours.
             | Ditto a variety of other kinds of sports betting. Like, I
             | know people do these at home, too, but there's _a lot_ of
             | it happening during business hours, at offices.
        
           | 41209 wrote:
           | It's all good until you remember you have to now higher an
           | entire team to manage your bare metal servers. Companies
           | don't like adding new employees, even when it's comparable in
           | cost to hiring an outside vendor or paying for an outside
           | service. Firing 10 people is very messy, reducing your AWS
           | budget by 20%, however is not.
        
           | mbesto wrote:
           | You have some really good points, but your premise is simply
           | not based in reality.
           | 
           | You're painting the picture as if AWS is the 2nd version of
           | the IBM saying: "No one ever got fired for using AWS". This
           | is simply not true...at least not the part where "IBM" (i.e.
           | AWS now) is somehow inferior to the competition.
           | 
           | > If you are large enough to need to build your own
           | datacenter instead of renting floorspace for pennies on the
           | dollar from Switch or Equinix (although Equinix is kind of
           | pricey) or Windstream or insert provider - then the
           | datacenter is a rounding error in your 10-year IT budget.
           | 
           | Then you clearly don't understand the TCO of using a data
           | center vs cloud. The datacenter cost itself isn't the cost -
           | the people who operate it are.
           | 
           | On a computing resource basis can you operate SQL Server on a
           | rack in Equinix for cheaper than that in AWS? Sure, but who
           | is going to pay for the person to patch it every week, or
           | upgrade it to the latest version, or upgrade the SAN disk, or
           | upgrade the hardware every 3 years, etc. etc. Let's take this
           | a step further - who is going to hire these people? And fire
           | them? And train them? These are all transactions costs that
           | get hidden in the "$0.20/hr cost" of spinning up an EC2
           | instance.
           | 
           | If you think cloud computing it's just about a lift and shift
           | from a traditional data center, then you don't understand how
           | to calculate TCO.
           | 
           | P.S. - For the record, many large internal IT groups _do_ in
           | fact do simple lift and shifts from traditional data centers
           | and don 't fully realize the value of cloud computing
           | resources. However, these companies will usually mature
           | eventually and evolve services to ones that are more
           | advantageous (i.e. setup SQL Server on EC2 and the migrate to
           | RDS). AWS (et al) have the ability to do this with ease.
        
             | pbalau wrote:
             | > On a computing resource basis can you operate SQL Server
             | on a rack in Equinix for cheaper than that in AWS? Sure,
             | but who is going to pay for the person to patch it every
             | week, or upgrade it to the latest version, or upgrade the
             | SAN disk, or upgrade the hardware every 3 years, etc. etc.
             | Let's take this a step further - who is going to hire these
             | people? And fire them? And train them? These are all
             | transactions costs that get hidden in the "$0.20/hr cost"
             | of spinning up an EC2 instance.
             | 
             | Who cares? This is IT and is not relevant. And they have
             | Brent and he will solve everything.
        
             | jjoonathan wrote:
             | You still need the IT team to babysit the AWS
             | infrastructure.
             | 
             | I've seen this "even a lift-and-shift reduces TCO" argument
             | before, but it only ever works if you pretend that AWS
             | lives up to its zero-management hype. Maybe, for someone,
             | it does. Not for any deployment I've seen. This never
             | prevents management from pretending, of course.
             | 
             | EDIT: ah, I've seen that the argument has retreated to "it
             | reduces IT headcount." Again, maybe for someone, but I have
             | yet to see it actually work, and every time management has
             | just hustled the TCO calculation.
        
               | acdha wrote:
               | > You still need the IT team to babysit the AWS
               | infrastructure. ... it only ever works if you pretend
               | that AWS lives up to its zero-management hype.
               | 
               | Who is saying zero-management? If you have a consultant
               | lying to you, that's not a cloud problem and I've heard
               | the same people lie about all kinds of on-premise
               | services as well.
               | 
               | What I've heard the major cloud providers say is true:
               | you need _less_ staff and you can spend time on different
               | things, which has been generally true. For example,
               | instead of needing to configure a bunch of network
               | hardware (which is a distinct skill you need to hire) you
               | can have a general devops person use Terraform to manage
               | routes, firewall rules, etc. without also needing to be a
               | Cisco expert and spending time operating the underlying
               | hardware.
               | 
               | The key question to ask is where your infrastructure was
               | to start with. If you have an A-grade ops team, a lift-
               | and-shift will probably not be much of a cost savings
               | because you presumably already have economies of scale
               | working in your favor, unless you have enough bursty
               | workloads to pay for it that way. The catch is that most
               | places do not have that high-end ops capacity so what
               | you're really doing is taking your limited IT capacity
               | and reclaiming the time which is currently going into
               | things like managing Dell firmware updates.
        
             | stuff4ben wrote:
             | Surely for any company of size you understand there will
             | still be people managing the AWS infra. Having tens to
             | hundreds of small dev groups go at it willy nilly is a
             | recipe for disaster and overspending. Someone still has to
             | patch the server instances, manage the people who access
             | it, train them on how to use AWS, etc. Those costs don't go
             | away because you've moved to the cloud.
        
               | mbesto wrote:
               | > Those costs don't go away because you've moved to the
               | cloud.
               | 
               | Sure, but you can go from "I have 5 people managing my
               | 150 instances of SQL Server" to "I have 1 AWS sys admin".
               | The point wasn't that the costs are eliminated, it's that
               | they are baked in.
        
               | NineStarPoint wrote:
               | Generally at big companies you needed people to manage
               | the infrastructure, and people to manage the layer on top
               | of that infrastructure though. With clouds you can
               | consolidate those groups into one group that is smaller.
               | 
               | I think Cloud still costs more overall, never been
               | convinced it actually saves money. I do think it tends to
               | increase developer velocity though, and that can be worth
               | it.
        
             | ryanjkirk wrote:
             | > who is going to pay for the person to patch it every
             | week, or upgrade it to the latest version, or upgrade the
             | SAN disk, or upgrade the hardware every 3 years, etc. etc.
             | Let's take this a step further - who is going to hire these
             | people? And fire them? And train them? These are all
             | transactions costs that get hidden in the "$0.20/hr cost"
             | of spinning up an EC2 instance.
             | 
             | You're implicitly arguing that NoOps is not only a
             | functional model, but also scalable and much less costly
             | than having a {Dev|Sec}Ops staff. The last time this was
             | publicly debated between Adrian Cockcroft and John Allspaw,
             | it was immediately obvious to everyone that there is no
             | such thing as NoOps. You can have developers support their
             | own apps in production on the cloud, but that takes away
             | time from developers and comes with its own set of
             | downsides (most prominently, a disinterest in what they
             | consider mundane or boring). Once your developers are
             | spending, in aggregate, more than 40 hours a week do ops
             | work, you'll gain efficiency by hiring a DevOps Engineer
             | whose entire career focus is all the things developers
             | aren't typically great at. I've seen this in-person as an
             | employee at medium, large, and a Fortune 50 business. I
             | haven't yet seen a single app, not even serverless, that
             | requires zero maintenance. I have also seen highly-
             | distributed, performant apps run on cheap hardware with no
             | SAN or VMware to drive up the cost and complexity. That
             | same app, made up of mostly microservices, was much more
             | expensive to run on on the cloud.
             | 
             | You might want to stop throwing around terms like TCO when
             | you also clearly don't understand how to calculate it.
             | 
             | I'm starting to be of the mindset that us-east-1 is already
             | "Too Big To Fail". I guarantee you that conversations are
             | being had in boardrooms right now about how to reduce
             | dependency on that region, if not AWS entirely.
        
               | mbesto wrote:
               | > You're implicitly arguing that NoOps is not only a
               | functional model, but also scalable and much less costly
               | than having a
               | 
               | I'm not. You implied too much.
               | 
               | > You might want to stop throwing around terms like TCO
               | when you also clearly don't understand how to calculate
               | it.
               | 
               | I do. I never said that people were _completely_
               | eliminated (see one of my child comments). Everything you
               | implied was that  "well devs are doing the effort and
               | that doesn't get calculated". That wasn't my argument -
               | you just added that nuance as a retort.
               | 
               | > I guarantee you that conversations are being had in
               | boardrooms right now about how to reduce dependency on
               | that region, if not AWS entirely.
               | 
               | I guarantee you they are not. Also, how many data center
               | providers let you simply spin up your whole environment
               | into another region, point n click, and complete it in
               | hours?
               | 
               | Source - work with 100+ companies with PE folks that sit
               | on boards.
        
               | ryanjkirk wrote:
               | > I guarantee you they are not.
               | 
               | I'm speaking from firsthand knowledge. How embarrassing
               | for you to think that because you know some Private
               | Equity folks (generally the worst people at managing
               | technology), that 100% of the rest of the world is doing
               | (or not doing) exactly what they're doing.
               | 
               | You wrote paragraphs about how expensive it is to hire
               | people to do stuff in a datacenter. What is your
               | argument, if it is not that this is more costly than
               | outsourcing it?
               | 
               | This entire debate should be recast the simple "build vs
               | buy" concept that it already is.
        
             | tw04 wrote:
             | >Then you clearly don't understand the TCO of using a data
             | center vs cloud. The datacenter cost itself isn't the cost
             | - the people who operate it are.
             | 
             | I guess I find that a bit humorous. I've been architecting
             | solutions that span on-premises and cloud for nearly a
             | decade so I'm intimately familiar with both. I don't
             | actually have a horse in the race. You want cloud, buy
             | cloud, you want on-prem, buy on-prem. But the marketing
             | about one-size-fits-all is EXTREMELY tiresome. And the idea
             | that every single business can or should be moving their
             | entire infrastructure to the cloud is as well.
             | 
             | The fact you imply that somehow you don't need people to
             | manage the cloud makes me seriously question what at-scale
             | deployments you've been a part of. I have yet to see a
             | single enterprise customer save money on staff by moving to
             | the cloud. More often than not what they end up doing is
             | laying off the "tape jockey" and replacing him with an SRE
             | who costs 3x the salary. Congratulations? Now you're paying
             | more for an SRE, and you're backing up to S3 at about 5x
             | the cost of what you were spending on tape? But I guess the
             | 7 years of backups you're legally obligated to keep are
             | more agile?
             | 
             | >If you think cloud computing it's just about a lift and
             | shift from a traditional data center, then you don't
             | understand how to calculate TCO.
             | 
             | I don't think the concept of cloud computing is lift and
             | shift and never said it was. But that's not really relevant
             | to OP's question, what is relevant is what's happening on
             | the ground.
             | 
             | What's actually happening is that most established
             | businesses "moving to the cloud" are lifting and shifting
             | and finding out the hard way. I'm not saying that's what
             | they should do, I'm not saying that's at all a good idea,
             | I'm telling you that is what is happening. And if you think
             | "well they'll mature into a more cloud friendly model" -
             | you're as delusional as their management. What _ACTUALLY_
             | happens is after they lift and shift and get a year 's
             | worth of those bills, they lift and shift the stuff that
             | never should've been in the cloud in the first place back
             | on-premises. Hopefully by that point they've learned their
             | lesson and have a thoughtful evaluation of their
             | applications: re-home, re-write, leave in place.
        
               | mbesto wrote:
               | > But the marketing about one-size-fits-all is EXTREMELY
               | tiresome. And the idea that every single business can or
               | should be moving their entire infrastructure to the cloud
               | is as well.
               | 
               | 100% agree. Didn't mean to imply this. As with
               | anything.... _it depends_.
        
             | acdha wrote:
             | > If you think cloud computing it's just about a lift and
             | shift from a traditional data center, then you don't
             | understand how to calculate TCO.
             | 
             | This is especially true for more than basic services. If
             | all you need is a bunch of Linux servers, sure, you can
             | find people who will keep them patched for you without too
             | much trouble (although it'll almost certainly turn that
             | "rounding error" into a serious number) but once you start
             | building things which are higher level with legitimately
             | hard problems to solve and need to have good solutions for
             | all of the monitoring, security, ops, etc. needs that
             | staffing becomes harder and you're going to have to sell
             | your executives on the idea that the best use of your
             | expensive A-team is cloning S3, Lambda, etc. when you can
             | get that benefit immediately without a massive up-front
             | payment and have the same people working on a strategic
             | benefit.
        
               | ryanjkirk wrote:
               | > cloning
               | 
               | No need to clone; all of this already exists. Take a look
               | at CNCF.
        
               | acdha wrote:
               | I'm trying to be charitable here, can you expand on that
               | and explain why that's not an invalid comparison? For
               | example, the word immediately after your quote was "S3".
               | That's not something the CNCF can solve for you since one
               | of those is a service and the other is an application you
               | can run -- at the very least you need an _extensive_ ops
               | and security if you're relying on it as much as S3 - and,
               | assuming you're talking about Rook, you're comparing it
               | to one of the largest, highest-scaling services in
               | existence but here's what you're on the hook to do if you
               | do it yourself:
               | 
               | * Kubernetes
               | 
               | * High-level storage services: Ceph, Cassandra, NFS
               | 
               | * Lower-level storage for whatever you pick for the
               | previous point
               | 
               | Each of those, and the combined service you build, needs
               | staffing for operations, monitoring, security, etc.
               | support. If you follow any security standards or are in a
               | regulated industry, you're on the hook for documenting
               | compliance on all of those, too, especially if you need
               | to be able to demonstrate things like immutability.
               | 
               | You certainly can do this but that's a number of full-
               | time jobs requiring expertise. If you have enough storage
               | usage you can potentially justify the savings over the
               | rates you'd be able to negotiate but that's a big up-
               | front cost which you hope but are not guaranteed to
               | recoup.
        
               | ryanjkirk wrote:
               | Don't forget Minio for S3.
               | 
               | I took your previous comment to be about on-prem cloud
               | technology. It exists and does not need to be "cloned".
               | If you were taking about staffing resources, we've pretty
               | well established you're going to need staffing to manage
               | both cloud and on-prem tech.
               | 
               | You need to document whether it's on-prem or in the
               | cloud.
        
               | acdha wrote:
               | I excluded Minio because that's not branded as a CNCF
               | project but that doesn't make the comparison less
               | invalid: if you're building an S3 replacement, you will
               | need to spend a lot of money up front hiring people,
               | buying hardware, and building an equivalent service.
               | That's a significant 7+ figure commitment just to get to
               | the point of saying that you have an equivalent service.
               | 
               | If you buy storage by the petabyte or use a large enough
               | amount of network egress, you can definitely make that
               | money back but it's a major commitment.
        
               | ryanjkirk wrote:
               | Again, you don't need to build an S3 replacement; you can
               | deploy it onto k8s. This is the same skill set whether in
               | a public or private cloud.
               | 
               | Agree, I don't think anyone is buying SANs that don't
               | need them. If you're spending 7 figures on your AWS bill,
               | you should be looking into other options.
        
               | acdha wrote:
               | > Again, you don't need to build an S3 replacement; you
               | can deploy it onto k8s. This is the same skill set
               | whether in a public or private cloud.
               | 
               | That is building an S3 replacement. You aren't writing
               | every line of code personally but you are selecting
               | components, configuring them, operating the service, and
               | testing it, which is a major commitment. Simply running
               | k8s at an equivalent level is a non-trivial commitment.
               | 
               | > Agree, I don't think anyone is buying SANs that don't
               | need them. If you're spending 7 figures on your AWS bill,
               | you should be looking into other options.
               | 
               | Note that the 7 figure commitment I mentioned was what
               | you'd need to build an S3 equivalent. Simply having 24x7
               | staffing and hardware easily puts you in that range.
        
               | ryanjkirk wrote:
               | Nobody is arguing that a startup needs a datacenter; that
               | is a ridiculous straw man. I'm well aware of the costs,
               | having managed multiple colos as well as multiple cloud
               | footprints. I also know you can lease most hardware, if
               | you prefer not to depreciate assets.
               | 
               | You're casting this as a much more complicated concept
               | than it is. It is essentially the same old "build vs buy"
               | argument. No, it does not make sense to manage a
               | datacenter to run a single wordpress blog, nor does it
               | make sense for a telco to run their infra on top of a
               | public cloud. These are all truisms.
               | 
               | My point stands that if you have a seven-figure AWS bill,
               | you already have plenty of associated staffing costs.
               | Once you hit the break-even point between the two, you
               | can decide whether you want to continue to pay linearly,
               | or go down the path of increasing RoI.
        
           | _huayra_ wrote:
           | Cloud providers (especially Amazon) can definitely be a bit
           | greedy / shady about pricing and lock-in, but the key thing
           | is that they have room to lower prices whereas a bespoke data
           | center does not.
           | 
           | Most data center machines run at a tiny fraction of their
           | capabilities; seeing a CPU running at 25% is definitely
           | something that stands out. Because of this, cloud operators
           | can oversubscribe these machines in various ways, packing
           | workloads of multiple tenants onto a single box while a
           | single-tenant bespoke DC can't. They can also do things that
           | schedule DC-wide resources (namely power) in ways that
           | renting space in a colo cannot; they can shed load in
           | insightful ways when a power overtopping event happens that
           | can minimize the impact (e.g. throttle / nuke VMs that can
           | operate in a degraded mode before impacting other critical
           | services). No hetergeneous, multiple-private tenant DC is
           | going to oversubscribe their rack- or row-level power
           | delivery to tenants and require them to hook in to a smart
           | system to manage overtopping events; they just won't trust
           | their tenants to do the right thing, as they have no power
           | over the tenants' machines and power draws; the cloud
           | providers do.
           | 
           | At the end of the day, the economies of scale are just hard
           | to beat, in terms of COGS.
           | 
           | The real question is whether they'll pass the savings from
           | this on to the customers or the shareholders' dividends, and
           | so far it seems like it is the latter.
        
             | hodgesrm wrote:
             | > Most data center machines run at a tiny fraction of their
             | capabilities; seeing a CPU running at 25% is definitely
             | something that stands out.
             | 
             | Kubernetes fixes that, as does VMware. They can both
             | distribute workloads efficiently to ensure good
             | utilization. VMware has done that for 20 years.
        
             | ec109685 wrote:
             | AWS doesn't oversubscribe on EC2 instances outside the T
             | family.
        
             | ryanjkirk wrote:
             | > Most data center machines run at a tiny fraction of their
             | capabilities; seeing a CPU running at 25% is definitely
             | something that stands out.
             | 
             | Are you familiar with VMware?
        
               | rstupek wrote:
               | Is VMware free?
        
         | manigandham wrote:
         | Scale (of your application) is usually not the reason to use
         | clouds.
         | 
         | Agility, flexibility, security, global deployments, and
         | consolidated billing and operations are far more important.
        
           | wiremine wrote:
           | Exactly. The reasons to adopt (or not adopt) cloud, like any
           | technology, should revolve around business questions, not
           | technical ones. Of course, technical ones are critical to
           | business success, so you can't ignore them, but they are
           | subservient to the business concerns.
        
           | marcosdumay wrote:
           | Security is certainly and quite clearly not a reason to use
           | clouds. If they are any reason at all it is to avoid them.
           | 
           | But the others are spot on.
        
             | manigandham wrote:
             | Security is complex but many companies find it easier to
             | offload it to managed services and best-practices/reference
             | architectures in the cloud compared to janky internal
             | systems.
        
               | marcosdumay wrote:
               | Offload what exactly? You mean making the same decisions,
               | but through an opaque badly documented panel? Or you mean
               | paying somebody to keep your OS up to date?
               | 
               | Going into the cloud does not alleviate any security
               | decision. You can't buy security.
        
             | lotsofpulp wrote:
             | Being able to blame someone else for a security problem is
             | a reason to use the cloud.
        
         | closeparen wrote:
         | Almost all "on prem" business IT is managed by external
         | contractors. I was one of them. We served about a third of the
         | commercial premises in a small Midwestern city, driving out to
         | visit the server closet, change backup tapes, click through
         | Windows Updates, and perhaps make the rounds of desktop users
         | with any questions or concerns. We sold a monthly package of so
         | many labor hours, and we'd visit each customer site about once
         | a month. We'd get the keys from an office administrator who
         | perhaps knew how to provision user accounts. The biggest,
         | richest customers might have had 1-2 help desk on staff,
         | probably not domain admins and certainly not empowered to do
         | any decision making or design. That was for us.
         | 
         | It was quaint, adorable, personal, and hilariously inefficient.
        
           | greedo wrote:
           | You're talking "Mom and Pop" scale businesses that have
           | minimal computing needs other than printing and Internet
           | access. Most "on-prem" IT is much larger. My company (also in
           | the Midwest) has mainframes, SANs, vSphere deployments,
           | Nutanix, as well as supporting ~3K users.
        
             | closeparen wrote:
             | These businesses ranged from "Mom and Pop" to about 50
             | employees. There'd be a domain controller, Exchange server,
             | file server, PBX, SQL server, and application servers for
             | 2-3 line of business apps.
             | 
             | It seems very clear to me that these kinds of businesses
             | are much better served by cloud. No one of them is that
             | valuable of a customer, but there are so many.
             | 
             | Companies that are large enough to have an IT department
             | with multiple highly skilled professionals onsite, or who
             | could even contemplate doing a real data center (most "on
             | prem" is in a closet), I agree is a different calculation.
        
         | wodenokoto wrote:
         | On a previous job we had a huge GPU server on prem because we
         | wanted to use it for deep learning.
         | 
         | It would have been much, much cheaper to rent gpu in the cloud
         | and when we knew _something_ about our workload we could buy an
         | on prem and maybe rent extra if needed.
         | 
         | But we weren't cleared for cloud.
         | 
         | Regarding in-house expertise: I think most companies would like
         | to have in house expertise but they can't hire the expertise
         | they need so they use consultants.
        
           | dnautics wrote:
           | that's really surprising to me, because I used to run a GPU
           | cloud that was cheaper than amazon, and the margins were
           | _insane_.
        
             | wiz21c wrote:
             | I've looked for some GPU on the web and it's super
             | expensive to rent. I was expecting to rent that for say 50$
             | per month (considering I can rent some webspace for less
             | then 10$ a month) but everything was more expensive like
             | 600$/month (I look for entry level GPU, used just a bit,
             | I'm a student) ... Did I look correctly ?
        
               | dnautics wrote:
               | if you want an always-on gpu for $50/mo? That's
               | unreasonable. Consider how much "building from scratch"
               | even a cheap "minimal" GPU unit costs (let's say 3k GPU +
               | 1k supporting PC), whereas a cheap "building from scratch
               | minimal webspace" is a fraction of a single CPU unit, so
               | let's say $100-ish/unit dollars, to be really generous. A
               | rented non-fractional GPU should be _easily_ minimally
               | 40x the cost of a website.
               | 
               | Don't expect these ratios to be authoritative; there are
               | obviously different economies of scale and many many
               | details I papered over, but this should just give you an
               | idea of the back of the envelope "relative costs"; just
               | that 5x is way out of the range you should have guessed.
        
             | Enginerrrd wrote:
             | It all comes down to utilization as a percentage of time.
             | If the workloads are infrequent enough, GPU cloud providers
             | on going to crush the onsite equipment.
             | 
             | However... I was also sort of surprised, because last time
             | I priced this out, you can have pretty low utilization
             | rates of the equipment and still come out ahead.
        
               | dnautics wrote:
               | the other thing to consider though is that if you are
               | under pressure by management to not utilize GPU cloud,
               | you might do fewer experiments than if you had at least a
               | GPU workstation under the desk. (that, presumably, you
               | can share with other workmates)
        
           | ttymck wrote:
           | I appreciate your point about "they can't hire the expertise
           | they need" but I feel it's missing the "because": because
           | those hires are so expensive? Because they only exist as
           | consultants? Why can't they hire the expertise?
        
             | wodenokoto wrote:
             | I would so that about 3/4 places I've consulted, I wouldn't
             | want to work full time.
             | 
             | Mostly because they simply didn't know how to run an IT
             | office, and so they couldn't build a culture where good IT
             | people want to work. When they finally get a strong
             | candidate, they end up overloading the poor hire, because
             | finally, it looks like they can get their infrastructure
             | fixed or dream project off the ground.
        
             | baq wrote:
             | because nobody wants to be hired for the position. it isn't
             | even about the money, there's simply no candidates - and
             | any candidates competent enough are already consultants
             | and/or freelancers.
        
               | lotsofpulp wrote:
               | I.e. those hires are expensive. I am sure there would be
               | candidates with an offer of $1M/year.
        
               | baq wrote:
               | of course, everyone has a number - but also, for that
               | money you'll just hire a consultant and will probably
               | come out ahead.
        
             | Suchos wrote:
             | For company I am working at, it is acceptable to pay more
             | for even long term consultanst, than to pay market price
             | for experienced developers. The reason explained was, that
             | it is different budget line - HR does not want to "overpay"
             | for emplyees, so consultancy is the only option.
        
         | somethingAlex wrote:
         | Like anything it's just pros and cons. Sure you save money by
         | doing on-prem or just buying servers and colocating, but you
         | also get all the headaches that come with that.
         | 
         | I used to work at one of the most popular fast food chains. I
         | had one project that was internal to them and one that was
         | customer facing. The internal product, a search engine for
         | documentation ran on-prem while the e-commerce store ran on
         | AWS. Running the former on-prem was just fine.
         | 
         | I'm sure glad we were on AWS for the customer-facing site,
         | though. We'd run ads during the Macy's day parade, college
         | national championship, etc... dear lord I could not imagine
         | wrangling the necessary people to scale that out from an
         | infrastructure perspective. It was very nice just doubling the
         | number on our ASG, failing over to the secondary database,
         | launching another DB instance with double the capacity, and
         | repeating for the second one.
         | 
         | Between those popular ads and DDoS attacks I'd say AWS was a
         | win there, but internal tools don't benefit from the cloud as
         | much. Also not an MBA, but I feel like that's a rule a thumb
         | you can add to the repertoire.
        
           | JohnJamesRambo wrote:
           | I don't see any cost analysis, you're just glad you were on
           | AWS so you didn't have to do it. Could be a convenience fee
           | in there big time.
        
             | baq wrote:
             | or, more likely, it would have been impossible to scale at
             | a short notice and the site would slow down (with luck) or
             | go offline for a bit (most probable).
        
         | timmy2ply wrote:
         | It's not always easy to bypass the cloud, especially when you
         | have to deal with things like GDPR and host client data in
         | their respective region.
        
         | hourislate wrote:
         | Bank of America built their own cloud. They say they save 2
         | billion a year.
         | 
         | https://www.businessinsider.com/bank-of-americas-350-million...
         | 
         | It seems no company wants to be in the business of in house IT
         | Systems. They think moving all their infra into the Cloud
         | absolves them of all the responsibility of owning it
         | themselves, they don't give a shit how much it costs but then
         | tell you everyone has got to save money and tighten their
         | belts.
        
           | lotsofpulp wrote:
           | BoA's scale of operations are probably orders of magnitude
           | larger than most other businesses.
        
         | bsenftner wrote:
         | MBA here. The cloud is not a good value, the cloud handicaps
         | your organization by placing your most valuable resource - how
         | you compute - in 3rd party hands. Doing the financial math, the
         | cloud is absurd, it is a very bad value; if it were a better
         | value, the cloud providers would not have such high profits.
         | Doing the flexibility math, having one's own datacenter - even
         | a rented colo cabinet - provides far more flexibility than
         | working through a cloud provider's ticketing system. Doing the
         | organization knowledge math, having in-house skills to create,
         | modify, and completely customize one's backend infrastructure
         | with the knowledge that you're numbers are pure - nothing but
         | your jobs are running on your hardware - grants you the
         | visibility to optimize effectively.
         | 
         | I've done this: built a 17 server cluster, housed in a colo,
         | for a high compute startup producing 3D avatars from photos
         | automatically. The hardware for the cluster, including a
         | Federal Reserve class hardware firewall, was just over $50K,
         | with a month to month colo bill of $600. This was in contrast
         | to $96K per month if the same configuration were at AWS. This
         | was 7 years ago, so adjust the prices, but you get the
         | exponential higher expense point.
        
           | mwcampbell wrote:
           | On the other hand, what if your tiny company spends only four
           | figures per month on AWS and has only a single developer who
           | also acts as a sysadmin as needed? Is it even practical for a
           | company operating at that scale to colocate servers in an
           | environment that has anything like the private network and
           | multiple per-region availability zones of AWS? Not to mention
           | that, presumably, the developer would have to implement and
           | test their own equivalent of AWS's auto scaling and multi-AZ
           | database services. To me, AWS is worth the money.
        
             | [deleted]
        
           | notreallyserio wrote:
           | That $600 figure doesn't include the minimum in-house 5
           | person staff + 1 manager necessary to run a 24x7 high-9s
           | operation that could run operations such as live-migrating
           | workloads to standby systems in order to fix faulty hardware.
           | Additionally that same $96k could be used to run your compute
           | in multiple datacenters. Back of the napkin math suggests
           | that it'd be a wash once you expand to only three DCs.
           | 
           | I understand it was a startup and may not have needed high-
           | uptime ops from day 1, but a lot of organizations do, and the
           | cost is not that dissimilar.
        
             | bsenftner wrote:
             | Yes, it was a startup, with a staff of two. Once we had the
             | cluster up, self monitoring, and rotating on command it is
             | literally a half day a week to maintain the entire setup.
             | The hardware firewall was our best investment, as it load
             | balanced while fending off significant DDoS attacks from
             | hackers. It also is entirely required to use an experienced
             | network engineer for such a task. Far too many people try
             | to wing this, and that's where all the publicized horror
             | stories arise.
        
           | mrep wrote:
           | Not sure how an MBA helps here, but if all you are doing is
           | straight compute, then yes, cloud is a waste of money. The
           | benefit of cloud comes when you have a bunch of different
           | teams with different optimal solutions such as nosql, sql,
           | queue services, data processing pipelines, data warehouses,
           | object storage, CDNs...
        
           | sofixa wrote:
           | > I've done this: built a 17 server cluster, housed in a
           | colo, for a high compute startup producing 3D avatars from
           | photos automatically. The hardware for the cluster, including
           | a Federal Reserve class hardware firewall, was just over
           | $50K, with a month to month colo bill of $600. This was in
           | contrast to $96K per month if the same configuration were at
           | AWS.
           | 
           | You also have to include the human time spent setting up and
           | maintaining those servers. And also the fact that you can
           | probably use a managed service on request instead of 17
           | servers running constantly. Not even mentioning redundancy.
        
             | ericd wrote:
             | You can afford far more humans than you need to maintain 17
             | servers for $95.5k/month in savings...
        
             | bsenftner wrote:
             | Yes, the human time is an investment that pays back
             | multiple times over. Why the core of a technology business
             | would be in the hands of a 3rd party dismays me. Of course,
             | those 17 servers composed dev, staging, and live, plus
             | fallbacks, ultimately composing quite a few APIs and
             | related services. They were all used for high compute,
             | where a task would floor 32 cores for 3.5 seconds, and that
             | was essentially what the cluster was for, beyond the
             | accounting and tracking of its use.
        
       | jasode wrote:
       | _> Businesses' main motive for moving to the cloud was never
       | about cost but "scalability": having access to additional
       | computing resources with a few clicks. _
       | 
       | That's not accurate because many businesses do migrate for cost
       | reasons. Especially for internal non-public facing servers like
       | email. E.g. They moved from self-hosted Microsoft Exchange
       | servers to cloud-managed email like Office 365 Exchange Online --
       | or switch to another cloud competitor like G Suite.
       | 
       |  _> Ms Wang and Mr Casado have suggested that firms should think
       | about building their own private clouds to keep costs down. So
       | far few firms have opted for such "repatriation", which is both
       | costly and makes it harder for businesses to enjoy the benefits
       | of essentially unlimited computing resources in the public
       | cloud._
       | 
       | As a case study, The Guardian newspaper tried building their own
       | private cloud and failed. They ultimately just went with AWS:
       | https://web.archive.org/web/20160319022029/https://www.compu...
       | 
       | If the company's business profit is not in the tech sector (like
       | The Guardian), this means its IT datacenter operations is not its
       | core competency which makes it hard to build internal IT that can
       | keep up with AWS capabilities. Tech businesses like Dropbox,
       | Facebook, can hire & maintain skilled IT staff like AWS but most
       | other non-tech businesses can't.
        
         | AtNightWeCode wrote:
         | The fundamental promise of the cloud was that it was going to
         | be cheaper over time. That was 100% how it was sold back in the
         | days. "We buy all the hardware to a fraction of the cost
         | comparing to any private company", and so on. Scale arguments.
         | And "We manage the hardware and the platform so you can focus
         | on features". Today, Azure for instance motivates the high
         | prices per request with things like security and compliance. I
         | guess it is the same with other providers.
        
           | gatvol wrote:
           | Azure is the joker / clown in the cloud security pack. I'd
           | wager they're both the most expensive and insecure.
        
         | [deleted]
        
         | mr_toad wrote:
         | > If the company's business profit is not in the tech sector
         | (like The Guardian), this means its IT datacenter operations is
         | not its core competency
         | 
         | By that logic a bookseller has no business running the world's
         | largest cloud!
         | 
         | Not that I'm disagreeing with you in general, Amazon is very
         | much an exception to the rule.
        
         | redwood wrote:
         | It's TCO through the lens of "do you really want to have to
         | have specialists in that?" Akin to running your own power plant
         | -- MAYBE you can do so "more cheaply" than grid power through a
         | one dimensional cost of inputs lens but all of a sudden you're
         | running a power plant which is a bummer when your customer
         | complains that the burger doesn't taste right
        
         | krab wrote:
         | > The Guardian newspaper tried building their own private cloud
         | and failed
         | 
         | What I see often is that it's hard and costly to replicate the
         | whole cloud experience in-house. OpenStack is a behemoth to
         | operate. However, if you build something more specific to your
         | needs (and often mix in selected public cloud services), you'll
         | get a much cheaper stack.
         | 
         | Small businesses can often run very efficiently with a few
         | rented physical servers in a colo, G Suite and AWS S3.
         | 
         | Larger ones can provide a platform specific to the technologies
         | used in-house and combine with public cloud for any other tech
         | stacks.
        
           | Spivak wrote:
           | Why are you recommending S3 when Ceph exists? You almost
           | literally just throw hard drives at it and it gives you
           | remote block devices for VMs, a NFS style shared FS, and an
           | S3 client compatible object store.
        
             | Eikon wrote:
             | What?
             | 
             | Operating a small ceph cluster is almost a full time job,
             | at least if you care about your data...
        
               | Spivak wrote:
               | People always think Ceph is super complicated but I
               | promise you it isn't. I worked at a place where my (3
               | person) team and I operated a 1 PB Ceph cluster
               | replicated across two datacenters along with literally
               | every other service needed to run a production web app.
               | It was one of the lowest maintenance services we deployed
               | -- Kafka and our RabbitMQ clusters were the things that
               | always gave us trouble.
        
               | krab wrote:
               | I was on a team that had a tiny (a few GBs) Ceph cluster
               | because it was the easiest option for high availability
               | of these files that we really wanted to have on premise.
               | There were never any issues so I can believe what you're
               | saying. Still, for the amount of data I work with, the
               | cloud storage usually wins.
        
             | krab wrote:
             | Others may have other preferences. This is what worked for
             | me. I just find S3 quite cheap for storing a few (tens of)
             | terabytes plus some glacier archives. For data I often want
             | multiple locations redundancy and encryption. That gets
             | more complicated than what I can save.
             | 
             | I guess the equation changes when you have more data or
             | looser requirements. That's actually my point. It's very
             | hard to recreate the whole AWS experience, but it's quite
             | possible to pick any piece and do it much cheaper.
        
           | laura2013 wrote:
           | what about openstack makes it a behemoth to operate?
        
             | Spivak wrote:
             | It's basically consultingware for IBM/Redhat. It tries to
             | be everything you could ever possibly need, the
             | interactions between the components are brittle, and it has
             | all the complexity of a huge k8s deployment except your
             | ability to affect what's going on underneath is like trying
             | to control an angry beehive with a 20 ft pole.
             | 
             | Think Urbit but for sysadmins and you pretty much get the
             | vibe.
        
             | krab wrote:
             | It tries to do pretty much everything. Just my opinion.
        
             | redwood wrote:
             | Where to even begin? It's like assuming a car is easy to
             | operate that you have to build from parts
        
             | mschuster91 wrote:
             | Ever tried installing it? It's an _incredibly_ complex
             | piece of work with boatloads of services to configure and
             | debug... and upgrade.
             | 
             | At the time I last tried it (some two or three years ago):
             | 
             | - most of the documentation was written assuming an rpm-
             | based distro and not Ubuntu or Debian (I remember
             | especially having had trouble with subtle differences in
             | iptables/nftables between the distributions)
             | 
             | - on top of that it was right in the middle of a python2 =>
             | 3 migration with the result of shit breaking left and right
             | 
             | - it was/still is written in Python which means a second or
             | more for every CLI command to initialize, much less
             | actually _do_ something
             | 
             | - half the instructions in the documentation seem to never
             | have been actually tested, which combined with the two
             | points above made for a really punishing "experience",
             | especially with more rarely-used features such as k8s-in-
             | openstack
             | 
             | - the documentation itself still is (just looked it up)
             | badly organized, with you needing to read four guides
             | (Install, User, Configuration, Ops/Administration) _per
             | OpenStack component_. Ideally, there should only be one
             | guide for Installation /Upgrade (including Configuration
             | and everything from Ops/Admin) that has _everything_ in it
             | to get _all_ supported parts of the component up and
             | running, one User 's Guide that shows how the component is
             | used and what the best practices are, and one
             | Troubleshooting guide.
             | 
             | If you can set it up into a working configuration, it's a
             | nice project for sure. But the road to that point is rough,
             | and you will likely not even want to think about an upgrade
             | simply because of how complex it is.
        
           | tootie wrote:
           | I worked at a place that had a large, underutilized data
           | center. The DevOps team was stuck in the past and operated
           | too slowly to provision capacity when it was needed so a lot
           | of it was just fallow. They had spent months and months
           | working with a vendor to get these into a k8s fleet, but I
           | never saw the outcome. The devs teams in my office were just
           | throwing shit up on Azure or even Heroku and just not asking
           | permission. We got substantial increases in revenue and the
           | incremental cost of hosting was negligible.
        
             | krab wrote:
             | I've been there as well (modulo cloud brand to which we
             | moved). I understand this reason for moving to cloud but it
             | makes me sad.
             | 
             | It worked like this - you had to fill a form to request a
             | VM. After a few emails (and days because time zones), you
             | got a few years old RHEL VM without root access, but also
             | without any real support from the ops organization. They
             | tried to provide the generic cloud experience with VMs and
             | failed.
        
           | hodgesrm wrote:
           | Most companies that I see operating private clouds are using
           | Kubernetes. It's much more flexible than OpenStack. It also
           | has the advantage that apps are more or less portable across
           | private/public cloud infrastructure.
        
         | hodgesrm wrote:
         | It very much depends on the business. We offer managed data
         | warehouses, which (a) are major consumers of
         | compute/storage/networking and (b) often have stringent
         | requirements around security and control of data.
         | 
         | We're betting that not everyone will be in the main public
         | clouds for these reasons and prepared for the pendulum to swing
         | back for some applications. Financial services companies for
         | example still have major on-prem / self-managed footprints.
         | They are very sophisticated consumers.
         | 
         | (My company Altinity was the one cited at the head of the
         | article.)
        
         | nojito wrote:
         | Why are you comparing it to selfhosted? BareMetal has been a
         | thing for decades and outperforms the "cloud" on cost and
         | performance for the _vast_ majority of usecases.
        
           | Cthulhu_ wrote:
           | Except that you have high initial costs in setting up this
           | hardware, especially in a scalable fashion; it quickly adds
           | up to tens of thousands, plus you need employees that can
           | manage something like that, including 24/7 support or
           | monitoring.
           | 
           | Or at least, that's part of AWS' sales pitch. But it makes
           | sense, if you're just an application developer, you can fire
           | up a hosted, scalable, redundant cluster fairly easily and
           | quickly, whereas if you go self-hosted you need to buy
           | hardware, colocation, and either know or hire people that can
           | set it up and mange it.
        
             | nojito wrote:
             | I can get a dedicated baremetal server up and running in 10
             | minutes after paying for it (some can get it done in
             | seconds).
             | 
             | Scale does NOT matter for the _vast_ majority of usecases.
             | For example, the parent comment talked about on-prem
             | exchange server.
        
             | Nextgrid wrote:
             | The high upfront cost only applies to buying the hardware.
             | What about renting from Hetzner or OVH?
        
               | yholio wrote:
               | Sure, but you need to put it into Powerpoint and sell it
               | as the next big thing in cloud computing: your cloud
               | provider no longer offers you shared, cheap virtual
               | servers that anyone might be using at the same time, but
               | 100% dedicated servers in the cloud, with unmatched
               | reliability, stability and performance.
               | 
               | You just might impress top brass and convince them to get
               | on this bandwagon before they are disrupted.
        
               | harpratap wrote:
               | How is Hetzner not a cloud computing business? You click
               | a few buttons and get a a ready-made infra from an
               | already provisioned pool of hardware. This is by
               | definition cloud. Maybe it doesn't have all the bells and
               | whistles from the big 3 cloud vendors but Hetzner is very
               | much Cloud computing
        
               | Nextgrid wrote:
               | It's not "cloud" in the sense it's not AWS, GCP, Azure,
               | etc and is orders of magnitude cheaper (and bandwidth is
               | free).
               | 
               | But yes technically it's "cloud" in the sense that it's
               | still someone else's computer for rent.
        
           | jacobr1 wrote:
           | The problem is social and bureaucratic. Business unit X wants
           | to buy software that solves a certain business problem. Oops
           | you missed this annual budget cycle that is tied to hardware
           | purchasing, better try again next year. Or, great we'll help
           | you buy that hardware, but there is a 3-6 month leadtime. So
           | many organization had an adversarial relationship to their IT
           | group. Even when they didn't want it, the structures
           | prevented solid partnership. On the other hand, SaaS, or
           | self-service cloud (either on-prem openstack stuff, or real
           | cloud aws/gcp/azure) allows groups to manage their own
           | resources while still having a central coordinating function.
           | 
           | Working in enterprise software, I was am always surprised
           | when I find a killer feature may not the functional value of
           | something we've built, but that fact it works around some
           | internal disfunction of operations between internal teams.
        
             | fragmede wrote:
             | That's the opposite side of Conway's law, but the real
             | point is large organizations can be dysfunctional. Cloud
             | computing lets customers bypass their organization's
             | particular dysfunction.
        
         | rmbyrro wrote:
         | They say the _" main motive"_, not the sole motive. Cost is
         | also a motive, for sure, but do you consider they'd move to
         | reduce costs if there wasn't scalability?
        
         | lumost wrote:
         | Arguably, the guardian is a tech business at this point.
         | However fundamentally - hosting is not its core competency. If
         | you've ever tried to pinpoint a businesses's core competency
         | the simple test is "is this something that if we fail at, we'll
         | keep trying". There is a big execution risk in building a
         | private cloud, you end up paying this risk both on whether you
         | have the right people to build, maintain, and grow a datacenter
         | - as well as whether you have the right set of APIs to support
         | growing your application.
         | 
         | Most businesses will look at the relative costs and opt for a
         | private cloud solution, then price in the risk and go for the
         | cloud solution. There is no reason the Guardian _must_ control
         | its own hardware.
        
           | dijit wrote:
           | > There is no reason the Guardian must control its own
           | hardware.
           | 
           | No, but it has potential political ramifications, right?
           | 
           | All the Cloud providers are US. Does this mean the guardian
           | will be more wary about saying anything negative about the
           | US?
           | 
           | All the cloud providers are big companies, does this mean
           | that the Guardian might be less critical of big companies?
           | 
           | Obviously being completely vendor agnostic is difficult; but
           | we shouldn't pretend that there _could not_ be backlash in
           | unexpected ways- even if  "hosting is not a core competency".
           | 
           | A thing that comes to my mind is Edward Snowden's
           | revaluations: given the things he talked about (NSA was even
           | tapping Google lines, for example): how could any
           | whistleblower expect to not be exposed by accident if
           | everyone is using a cloud provider in the US?
           | 
           | It just strikes me as marginally naive to assume that nothing
           | can/could go wrong here, you hand off an immeasurably large
           | amount of control to an ambivalent entity and whatever regime
           | they happen to be under.
        
       | tzs wrote:
       | > Ms Wang and Mr Casado have suggested that firms should think
       | about building their own private clouds to keep costs down.
       | 
       | It shouldn't be called a "cloud" in that case. It should be
       | called a "fog".
        
       | k__ wrote:
       | Akashnet is an interesting alternative. Sadly, it's Docker based.
        
         | imglorp wrote:
         | Would you elaborate on the downside?
         | 
         | That seems like a common subset that would satisfy a lot of use
         | cases with minimal ceremony.
        
           | k__ wrote:
           | Yes. It's good enough, I guess.
           | 
           | I think, a VM approach would have been a bit more flexible.
        
           | itisit wrote:
           | > Akash Network leverages 85% of underutilized cloud capacity
           | in 8.4 million global data centers, enabling anyone to buy
           | and sell cloud computing. [0]
           | 
           | How do you even begin to operate a consistent security model
           | across "8.4 million global data centers"?
           | 
           | > Auditors on the Akash Network review cloud providers and
           | digitally sign the provider on-chain with their certificate.
           | If you only accept bids from audited providers this means you
           | are trusting the Auditor/Provider not just a Provider. [1]
           | 
           | For a business at scale, I don't see this being solid
           | contractual ground. Now I have to trust Auditors to
           | continuously vet Providers? Simply too tenuous for my
           | comfort.
           | 
           | [0] https://akash.network/about#vision
           | 
           | [1] https://docs.akash.network/glossary/security
        
       | sirjaz wrote:
       | I currently work for a large fortune 50 company as a Senior SRE
       | in charge of server build automation for both cloud and on-prem.
       | We have found that on-prem is cheaper and has less hoops to jump
       | through. We do use vRealize Automation and Orchestration from
       | VMware and it is a good agnostic platform to do this.
        
         | Cthulhu_ wrote:
         | Even when adding the upfront investment costs of hardware and
         | ongoing cost of qualified personnel and support duties? And
         | what if overnight your company needs 10x the capacity?
        
           | sirjaz wrote:
           | We actually are setup with a major hardware vendor where they
           | roll out that 10x capacity ahead of time, and we only pay for
           | it when we flick on the switch. Otherwise, it is powered
           | off/Standby just sitting there drawing minimal power
           | resources if any.
        
       | nderjung wrote:
       | One way to reduce compute costs significantly is by using _a much
       | lighter stack_. Typical deployments to the cloud are based on the
       | traditional OS model, and more often than not are a container-in-
       | a-VM solution to deploy some service. The reality here is that
       | there is so much unused, unnecessary and wasted compute
       | resources. Why deploy a full OS and kernel which will only ever
       | serve static web content, for example. And then there 's the
       | attack surface that comes with a full OS, running additional
       | services like SSH which may only ever be used once.
       | 
       | Major vendors like Amazon and Google are happy to provide this to
       | anyone and with simple on-boarding, but, as is clear in the
       | article, it's expensive. With Unikraft[0], you can completely re-
       | package your application as a unikernel, automatically. It's a
       | single VM image and does nothing more than just running the
       | application. It boots straight to the main application, it
       | doesn't have a shell, and has nothing else running along side it.
       | The result is a huge cost saving (up to 50%), since you're no
       | longer having to pay for these extra resources just to run the a
       | full traditional OS image _plus_ your application.
       | 
       | [0]: https://unikraft.io
        
         | mikkelam wrote:
         | Maybe you should also mention that you are affiliated with this
         | project. This reads like an ad.
        
         | baq wrote:
         | i've always thought this is collecting pennies in front of a
         | steam roller: you save 50% only to go out of business when a
         | black swan hits and you can't debug an issue in production in
         | any way. i guess this changed?
        
         | kall wrote:
         | The V8 isolates used by Deno Deploy and Cloudflare Workers are
         | also promising in that regard. It doesn't get much lighter then
         | that.
        
         | pid-1 wrote:
         | 50% compared to what? AWS EC2? Lambda? Google Cloud Run?
         | 
         | Those sort of numbers without even having a pricing page give
         | me 0 confidence sorry.
        
       | username223 wrote:
       | Problem: Managing server hardware takes money and people.
       | 
       | Solution: Subscribe to a middle-man that manages it for you.
       | 
       | Problem: The middle-man is slowly turning the screws to increase
       | its profits.
       | 
       | Solution: Subscribe to another middle-man to figure out how to
       | decrease the first middle-man's profits.
       | 
       | It seems to be a universal truth that computing people try to
       | solve all problems with another level of indirection.
        
         | pm90 wrote:
         | > It seems to be a universal truth that computing people try to
         | solve all problems with another level of indirection.
         | 
         | This isn't about computing but about specialization. Should
         | McDonalds be in the business of operating Data Centers? Or
         | should they just buy it from those who do it best and focus on
         | selling food?
        
           | username223 wrote:
           | > Should McDonalds be in the business of operating Data
           | Centers? Or should they just buy it from those who do it best
           | and focus on selling food?
           | 
           | Should they be in the business of cleaning bathrooms, or
           | should they just outsource that to a temp agency? Sometimes
           | specialization pays, and sometimes it doesn't. Perhaps it
           | doesn't make sense for McDonalds to run its own web and
           | corporate servers, but doing so might make a lot of sense for
           | more tech-centered companies. And I'd guess a server farm is
           | miniscule compared to the size and complexity of their
           | ingredient supply chains.
        
             | pm90 wrote:
             | Cleaning bathrooms is not the same level of complexity as
             | operating datacenters... you can train a janitor pretty
             | quickly; training a software engineer is much more
             | involved. And even with trained software engineers,
             | operating a reliable data center is just _hard_.
        
           | baq wrote:
           | i don't know. should a book store be?
        
             | pm90 wrote:
             | It should not.
        
         | yobbo wrote:
         | > Problem: Managing server hardware takes money and people.
         | 
         | For most, this was never the effective reason.
         | 
         | Most rationales behind cloud migrations are likely based on
         | quick scaling, which is meaningless in most cases - except for
         | the signalling of committing to a future where demand hockey-
         | sticks upwards.
         | 
         | It's valid if you are netflix, but how many netflixes exist in
         | the world?
        
           | jatone wrote:
           | its not even valid for netflix anymore most likely.
        
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