[HN Gopher] Moore's Scofflaws
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       Moore's Scofflaws
        
       Author : steveklabnik
       Score  : 76 points
       Date   : 2024-02-20 18:36 UTC (4 hours ago)
        
 (HTM) web link (oxide.computer)
 (TXT) w3m dump (oxide.computer)
        
       | geerlingguy wrote:
       | Per core licensing is pretty dumb, especially considering
       | commodity systems now have 32, 64, or more cores, and server
       | cores vary widely in capabilities.
       | 
       | Per core maybe made a tiny bit of sense when a server was one or
       | two cores. But that era's long gone.
        
         | bee_rider wrote:
         | Also it is a bizarre unit to break things up over. Actually,
         | how do per-core programs account for things like SMT? What
         | about Bulldozer? Can I get a discount license if I only run it
         | on an "efficiency" core? And we won't even get into GPUs...
         | 
         | What next? Let's charge users based on how many instructions
         | they have in flight for our application. These ILP cheaters
         | have been mooching off the rest of us for ages!
        
           | ghaff wrote:
           | It made a lot more sense back in the day. Then a slot of
           | things switched to per-socket.
        
           | wmf wrote:
           | Oracle and IBM have detailed pricing tables with dozens of
           | cases like "one mainframe core is worth three Intel cores".
           | But then you negotiate the price anyway so it seems kind of
           | pointless.
        
         | bombcar wrote:
         | Cloud, for better or worse, seems to be sold in vCPUs (read:
         | cores), RAM (gigglebites), and disk.
         | 
         | I wish there was a much better way to compare vCPUs than just
         | "count" because one core of some five year old server is not
         | the same as a core of a modern performance beast.
        
           | wmf wrote:
           | It's not like they charge the same price for a current gen
           | vCPU as a five-year-old vCPU. The benefit of self-service is
           | that you can benchmark it yourself.
        
         | nyrikki wrote:
         | IMHO per socket was extractive most of the time, especially
         | when memory capacity was the limit on performance.
         | 
         | The 'Oracle doesn't have customers, it has hostages'
         | 
         | The main purpose shifted from a hypothetical development cost
         | offset to an effort to extract more fees from customers who
         | were locked into your product.
         | 
         | Broadcom's changes to VMware, where they have publicly stated
         | that increasing revenue while not attempting to build new
         | revenue streams or through any value adds for the customers is
         | happening now.
         | 
         | I get that any technology moves to an extraction phase after
         | growth slows.
         | 
         | But for me, moves like per core licenses are an indicator we
         | need to consider vendor mitigation.
         | 
         | Unfortunately capital markets seem to prefer these lower long
         | term but predictable gains through extraction vs long term
         | dividends etc...
        
       | andrewstuart wrote:
       | The cloud is where Moores Law goes to die.
        
       | readthenotes1 wrote:
       | Isn't this just an ad?
        
         | hello_computer wrote:
         | KVM is free. ZFS is free. Linux & BSD are free. The margins on
         | server kit are tiny. If I've grown to the point that I need to
         | buy my own hardware, the application software is probably
         | something written in-house, so no licensing there either. Oxide
         | gets plugged here non-stop, but the audience here still
         | struggles to see what the point is. Sounds like a vanity
         | project to keep some of the old Solaris talent in-pocket.
         | 
         | edit: and the current growth-area is GPU/ML processing, where
         | Oxide has bupkis.
        
           | away271828 wrote:
           | One can simultaneously be impressed by the engineering while
           | wondering if this level of custom implementation at what will
           | probably be pretty low scale really makes sense.
        
             | hello_computer wrote:
             | Bezos had a clear proposition: " _I can handle your
             | workload better than you can for X cents per hour._ "
             | Cantrill doesn't.
        
         | 01HNNWZ0MV43FF wrote:
         | It's definitely content marketing, but I find Oxide interesting
         | enough that I don't mind.
        
       | neom wrote:
       | Bryan Cantrill is a million times smarter than me so I'm probably
       | missing something. I thought people bought into the enterprise
       | cloud ecosystems because of cost savings elsewhere? If you go
       | into a platform like AWS/GCP/Azure shouldn't you be designing
       | your applications to take advantage of the flexibility in the
       | wide range of services offered? If you don't need that and you're
       | not buying into all the abstractions they provide, you could use
       | _any other_ cloud-lite (Vultr, OVH, Linode etc)?
       | 
       | Maybe I'm stuck in 2015 but are people really out here rolling
       | their own clouds these days?
        
         | bcantrill wrote:
         | Our big belief is that elastic infrastructure (that is, cloud
         | computing) should be orthogonal to the economic model (that is,
         | own versus rent). Today, that is not the case: if you want
         | cloud computing, you more or less have to rent it. But we know
         | that there are many who wish (or need) to run cloud computing
         | but on an owned asset. There are many factors that deter that
         | today, not least the odious per-core licensing that we
         | highlight here. (For a particular brazen example of this, see
         | VMware's infamous "AMD tax" ca. 2020.[0])
         | 
         | [0] https://news.vmware.com/company/cpu-pricing-model-update-
         | feb...
        
           | dsizzle wrote:
           | Why aren't there prices on the website? (Seems weird that
           | there isn't given that blog post, where costs are pretty
           | central.)
        
             | steveklabnik wrote:
             | (not Bryan, not actively part of the decision to put prices
             | on the website or not, just my own take.)
             | 
             | Different audiences have different expectations. In the
             | place we are, that is, enterprise sales, the expectation is
             | not that you can go to a website, get a price, and click a
             | button. The expectation is that the two organizations will
             | communicate over a period of time ("the sales cycle") to
             | work through everything that goes into a deal, and
             | eventually come to an agreement or not. This includes so
             | many variables that putting the price on the website
             | wouldn't make sense, as you're never going to end up at
             | that exact price.
             | 
             | I used to find this attitude frustrating, as an engineer,
             | but the longer I have been a professional, and worked at
             | various organizations, the more I come around to that being
             | a good thing, not a bad thing.
        
               | bombcar wrote:
               | All I really want to know is "ballpark" - are we talking
               | four, five, ten figures?
               | 
               | I feel bad burning salesman time for a solution that is
               | way out of our range, but I can't learn that until after
               | a meeting or two.
        
               | steveklabnik wrote:
               | I hear you, but I can assure you that this comes with the
               | territory for sales people. Qualifying leads is part of
               | the job.
        
               | wmf wrote:
               | It's between a half million and a million.
        
               | dsizzle wrote:
               | If the price isn't listed, I always take it as a sign
               | that nobody is buying it for price reasons ("if you have
               | to ask, you can't afford it"). Outside of the blog, I
               | don't even see a claim that it's cheaper so that's
               | consistent.
        
               | steveklabnik wrote:
               | That is understandable, but you would be mistaken.
               | 
               | That quote (which may not even have been said by J.P.
               | Morgan) is talking about luxury consumer goods, which is
               | a completely different market than business to business
               | sales.
        
               | wmf wrote:
               | I wonder how many startups are overpaying for things like
               | cloud because they are using consumer thinking instead of
               | business thinking.
        
               | kmeisthax wrote:
               | "If you have to ask, you probably can't fit it in your
               | house."
        
               | Sylamore wrote:
               | As someone that often has limited time to research viable
               | options to present to leadership, I expect to be able to
               | negotiate pricing at the enterprise level if we want to
               | move forward. What's deeply frustrating that keeps me
               | from sometimes mentioning an option is having no idea
               | what the rough order of magnitude pricing is. Some kind
               | of pricing is deeply appreciated.
               | 
               | If I don't know whether something will fit within the
               | approximate budget for the project and can't quickly get
               | an idea from other research I'm not going to mention it
               | as an option. I'm used to spending about a million per
               | rack but that's for a complete ESX cluster with storage
               | and networking, if I have no idea how alternatives stack
               | up against that it's hard to put it on the table.
        
               | rcxdude wrote:
               | I will echo this. A product with no pricing information
               | will often just get no further exploration, especially if
               | a competitor does have it. Don't underestimate the
               | overhead of just having to talk sales before you have a
               | price.
        
               | steveklabnik wrote:
               | You are right that this sort of sales style has its
               | downsides. I am also not saying there's no value in
               | having _something_ on the page, or that Oxide is always
               | going to be this way. I am just talking about why it is a
               | norm in many parts of the B2B world.
        
           | ghaff wrote:
           | I actually find it interesting how many things we (which, in
           | part, I mean I) got wrong about cloud computing early on.
           | Various other things too.
        
         | rcxdude wrote:
         | There are alleged cost savings elsewhere. I haven't seen a
         | company that's actually realised them. Every company I know of
         | that's gone all-in on cloud is paying a fortune and still has a
         | big team to manage everything.
        
           | milesward wrote:
           | My company alone has over 150 case studies that document
           | specific positive ROI on cloud adoption. Not every can or
           | will run their own; I'm pumped for Oxide and I think they are
           | going to smash, but some teams really really benefit from
           | Public Cloud.
        
         | doctor_eval wrote:
         | Even taking into account the cost of skilled staff, AWS was
         | never price competitive with in house, at least in my
         | experience. I simply could never make the numbers work.
         | 
         | In my industry (telco) we had two teams: my team ran our own
         | hardware, the other team ran less than 10% of our workload on
         | an AWS stack that cost as much per month as we paid per year -
         | _including_ annualised capital costs.
         | 
         | They also had double the ops team size (!!), they had to pay
         | for everyone to be trained in AWS, and their solution was far
         | more complex and brittle than ours was.
         | 
         | Assuming Oxide would have been price competitive with what we
         | were already using, I would have jumped at the chance to use
         | them, I could have brought the other team on board, and I think
         | it would have given us a further cost and performance advantage
         | over our AWS based competitors.
        
           | bombcar wrote:
           | This has been my (admittedly small and small size) experience
           | - it's hard to make cloud competitive _unless_ you have
           | something like vastly changing requirements, huge burst
           | needs, etc.
        
           | nyrikki wrote:
           | Where you using cloud scale style purchasing in house or were
           | you on enterprise servers with enterprise switches with
           | enterprise storage?
           | 
           | The cloud is good for many users, especially if they migrate
           | to cloud native system design, but as a telco you would
           | probably have facilities and connectivity which helps out a
           | lot.
           | 
           | Companies like Mirantis, choosing a technology completely
           | inappropriate for distributed systems (puppet) put a bad
           | taste in the mouths of many people.
           | 
           | I implemented OpenStack at one previous employer to just
           | convince them that they could run VMs, intending it to allow
           | for a cloud migration in the future.
           | 
           | As they ran a lot of long lived large instances it was
           | trivial to make it cheaper to run in our own datacenter. Well
           | until I moved roles and the IT team tried to implement it
           | with expensive enterprise gear and in an attempt to save
           | money used FEXs despite the fact I had documented they
           | wouldn't work for our traffic patterns.
           | 
           | Same thing during the .com crash. I remember our cage was
           | next to one of the old Hotmail cages with their motherboards
           | on boards. We were installing dozens and dozens of Netras and
           | Yahoo was down the hall with a cage full of DEC gear...we
           | went under because we couldn't right-size(cost) our costs.
           | 
           | A lot of the companies who save a lot in cloud migrations
           | were the same, having decked out enterprise servers, SANs,
           | and network gear that was wasted in a private cloud context.
           | 
           | Enterprise _ is often a euphemism for we are fiercely
           | defending very expensive CYA strategy irrespective of value
           | to the company or material risk.
        
       | ChuckMcM wrote:
       | I really like 0xide's insight here. I don't know if Bryan has an
       | MBA but this article reminds me of how I learned that good
       | systems engineers make for good product people.
       | 
       | A friend of mine from Sun went to Santa Clara university for
       | their MBA and I was always interested in running a company and we
       | talked about what core knowledge the school felt that a "Master"
       | of business administration should know. Not too surprisingly
       | there was a lot about how you could organize a bunch of
       | unreliable elements (employees) into a structure that reliably
       | delivered results (products). And in one sense that is exactly
       | what cloud computing did as well, organizing unreliable "cheap"
       | PC type servers, into a fabric of reliable service delivery. It
       | is the _system_ of organizing the parts that is the solution.
       | 
       | Greg Lindahl was one of the founders of Blekko and his experience
       | of managing hundreds of machines for the super computer types
       | with big machine budgets and low IT budgets, was essential to
       | Blekko's ability to deliver its search engine. With a DevOps
       | group of six (one manager and five SREs) Blekko managed 2000+
       | machines in two data centers. IBM was astonished when they bought
       | us that we could manage with so few devops engineers.
       | 
       | We had also done the "What would this cost us on AWS" calculation
       | many times with many different variables and the 'break even'
       | point, where the cost to self host at a Colocation facility fell
       | below the cost to host with AWS was 120 servers. And that
       | included reducing the DevOps group size to 3. So about 10 racks
       | worth of servers. There was a really funny experience when IBM
       | insisted we move our infrastructure to SoftLayer (an IBM
       | business) when IBM acquired us and we pointed out that the "soft
       | money" cost of running our infrastructure on SoftLayer was about
       | $9M a month versus $120K a month. Which their finance group shut
       | down that talk and just renewed the lease in the Colo.
       | 
       | But to successfully run a big distributed thing like that, you
       | needed to both put your servers in a colocation facility and have
       | Greg's software which allowed you to manage them with a small
       | team. The total cost of that infrastructure depended on it.
       | 
       | I got a chance to go visit the 0xide team and they absolutely
       | "got" that requirement. If I were running Engineering and
       | Operations in Blekko today we totally would have kicked
       | Supermicro to the curb and replaced them with the 0xide solution.
       | I don't know if they have teamed up with Antithesis for testing
       | their stuff but man, that combo of management software that never
       | breaks and integrated server cabinets with all the things? That's
       | a pretty good integration.
        
       | frankfrank13 wrote:
       | I am constantly impressed by Oxide. Their writing is top notch, I
       | think they're exceptional engineers and product thinkers, and
       | clearly they care about the ecosystem they inhabit.
       | 
       | One day I would love to get all of their OSS up and running
       | locally. Truly, why not try to run your own private cloud? How
       | many old laptops, desktops, PIs, etc must we all have lying
       | around?
        
       | daxaxelrod wrote:
       | Tangent but "Your margin is my opportunity" was originally a Sam
       | Walton quote when he was building the 5 and dime stores. Bezos
       | was deeply inspired by early Walmart and Sam.
       | 
       | https://www.acquired.fm/episodes/walmart
        
         | bcantrill wrote:
         | That's interesting -- the quote is very much attributed to
         | Bezos. Did the quote actually come from Sam Walton, or merely
         | the sentiment? Either way, it's clear that the Waltons were an
         | inspiration to Bezos!
        
           | ghaff wrote:
           | Quote Investigator comes down pretty hard on the Bezos side
           | and doesn't mention Walton.
           | https://quoteinvestigator.com/2019/01/13/margin/
        
       | zbrozek wrote:
       | Case is inverted with javascript disabled. I've never seen that
       | before!
        
         | dcre wrote:
         | I can't reproduce in Firefox on macOS. Tell us more about your
         | setup!
        
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