[HN Gopher] IBM acquires Kubecost
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       IBM acquires Kubecost
        
       Author : ludikoff
       Score  : 60 points
       Date   : 2024-09-17 13:47 UTC (9 hours ago)
        
 (HTM) web link (newsroom.ibm.com)
 (TXT) w3m dump (newsroom.ibm.com)
        
       | Ralley37 wrote:
       | Smart acquisition, Apptio + Turbonomic + Kubecost is a strong
       | FinOps suite
        
         | jttam wrote:
         | Kubecost's position in the K8s community also will help
         | OpenShift along with Apptio+Turbonomic... their OpenCost
         | initiative is very clever, too
        
         | mrweasel wrote:
         | But is that what's going to happen? IBM has acquired a lot of
         | clever things, only to not really utilize them and just let
         | them wither away.
         | 
         | IBM bought RedHat 6 years ago, can we truly claim that they've
         | done something useful with that purchase? I get that they
         | haven't managed to mess it up like they did with SoftLayer, but
         | they've also haven't done much RedHat couldn't do on its own.
        
           | fortylove wrote:
           | As someone who used SoftLayer shortly after it was acquired
           | (and it was still pretty much untouched by IBM) - SoftLayer
           | was pretty bad to begin with. And I'm not only comparing it
           | to AWS. It was bad even when compared to RackSpace.
        
           | redhatcordyceps wrote:
           | Anonymous for obvious reasons: speaking as a current Red Hat
           | employee I disagree with the statement "they haven't managed
           | to mess it up like they did with SoftLayer".
           | 
           | IBM policy has definitely infected the company and while
           | outwardly the host still resembles its old self, the
           | infection is spreading and the host is as good as dead.
        
             | rafaelturk wrote:
             | I some point hoped that IBM and Red Hat would evolve into a
             | 'reverse takeover,' where Red Hat's culture would
             | eventually take precedence over IBM's. According to many
             | friends, that outcome is still far from happening
        
         | alephnerd wrote:
         | Yep!
         | 
         | Strong PMF with the existing hybrid cloud play that RHEL and
         | OpenShift provides.
         | 
         | Cost Management and Auditing is always a major pain point for
         | any Platform team so this will be well received.
        
       | doctorpangloss wrote:
       | Do you need a tool to tell you that the cloud is more expensive?
       | 
       | Do you need a tool to tell you that your company underpays or is
       | bad at recruiting? Or maybe that you do something boring that
       | people don't want to work for?
       | 
       | IMO Keda is the more important product in this space, because it
       | translates business requirements like max queue wait time into
       | compute resources.
       | 
       | If you are operating in a way where small cost differences decide
       | if you are break even if you have already failed, no amount of
       | "FinOps" will stop your trend from going to zero. It is delaying
       | the inevitable.
        
         | athorax wrote:
         | One of the main value adds of these tools is to help identify
         | and categorize workloads into OpEx and CapEx buckets
        
           | doctorpangloss wrote:
           | Unless you are currently in possession of a bunch of latest
           | generation NVIDIA DGX, which many people are, 99% of your
           | workloads are OpEx.
           | 
           | They might be CapEx in some imaginary, nonactionable
           | accounting sense. Like maybe you are mislabeling exclusive
           | rights to dig holes in some neighborhoods as
           | telecommunications equipment capital expenditures. Just pay
           | an accountant to make up stories for you. You don't need the
           | tool.
        
         | JackSlateur wrote:
         | I've built many projects where "the cloud" is less expensive
         | than the alternatives
         | 
         | The last big one: replacing a backbone country-wide network in
         | France with AWS
         | 
         | It is far less expensive due to the low bandwidth requirements
         | (and also the ability to go full managed services)
        
           | doctorpangloss wrote:
           | What stops AWS from "increasing the price" until it is very
           | close to what you were paying before, if not more?
        
             | JackSlateur wrote:
             | Nothing, and they do that regurarly
             | 
             | What stops dark fibers or hardware providers from
             | "increasing the price" ? Nothing, and they do that too
        
               | doctorpangloss wrote:
               | So you're proving my point. The tool cannot tell you the
               | single most important factor in pricing.
        
               | Spivak wrote:
               | The single most important factor in pricing is accurately
               | predicting the future, as we haven't invented time travel
               | yet we're gonna call that a wash. Here's a tool that
               | measures everything else.
        
               | doctorpangloss wrote:
               | Yep! You are agreeing with me. The tool measures a bunch
               | of noise, essentially, since it cannot predict Amazon's
               | pricing roadmap. Whereas the Kubernetes ecosystem has
               | plenty of valid forecasting tools, such as one which
               | forecasts compute usage, that are valuable.
        
             | akira2501 wrote:
             | Competition?
             | 
             | I've never had AWS "increase the price." Is there some
             | reason to suspect this is a thing to actually worry about?
        
               | klingoff wrote:
               | Price is supposed to cut in half every 3-4 years, if it
               | isn't it is largely because cloud vendors can't bear to
               | take less and hope there really is that much more volume
               | of half as valuable computing to do.
               | 
               | The things they sell as an average CPU performance, etc
               | are basically the average when their cloud began.
        
               | MrDarcy wrote:
               | Moore's law came to an end about a decade ago. Since the
               | clouds began a vcpu then is largely the same as a vcpu
               | today.
        
               | klingoff wrote:
               | No, Moore's law is fine. If the CPU takes half the real
               | estate and uses half the power but costs the same it is
               | the same perversion of the market expectations of Moore's
               | law as if you don't deliver twice as much in the same
               | price.
               | 
               | From Wikipedia:
               | 
               | Some forecasters, including Gordon Moore,[122] predict
               | that Moore's law will end by around 2025.[123][120][124]
               | Although Moore's Law will reach a physical limit, some
               | forecasters are optimistic about the continuation of
               | technological progress in a variety of other areas,
               | including new chip architectures, quantum computing, and
               | AI and machine learning.[125][126] Nvidia CEO Jensen
               | Huang declared Moore's law dead in 2022;[2] several days
               | later, Intel CEO Pat Gelsinger countered with the
               | opposite claim.[3]
        
               | lyu07282 wrote:
               | I think it's just because if you believe in economics it
               | would suggest AWS must've lowered the price per vCPU
               | since CPUs have become significantly more efficient in
               | the last decade. Obviously that didn't happen...
        
               | akira2501 wrote:
               | > if it isn't it is largely because cloud vendors can't
               | bear to take less
               | 
               | Cloud vendors have to buy products themselves. If their
               | prices aren't changing then we have a market problem that
               | extends beyond AWS.
               | 
               | This is probably why Graviton exists and provides cheaper
               | VMs and Lambdas running on it.
               | 
               | > as an average CPU performance
               | 
               | CPU performance, in the cloud, is effectively free. You
               | can overcommit and time share the CPU.
               | 
               | What you're paying for is memory.
        
               | klingoff wrote:
               | > If their prices aren't changing then we have a market
               | problem that extends beyond AWS.
               | 
               | How do you get there? Even in markets without any
               | specific lock in, the top brands charge prices that have
               | nothing to do with raw costs.
        
               | akira2501 wrote:
               | > with raw costs.
               | 
               | You've mistaken my point about "total cost of customer"
               | for "raw cost of materials."
               | 
               | The "top brands" probably do marketing. That costs. They
               | probably have better supply chain availability. That
               | costs. They probably have on site engineering support
               | they can offer you. That all costs.
               | 
               | What you're highlighting is the cost of CPUs has little
               | to do with raw materials and with all this other
               | attendant process. That has been true since a few short
               | years after the product started existing.
        
               | CapeTheory wrote:
               | > Price is supposed to cut in half every 3-4 years
               | 
               | Citation needed
               | 
               | > if it isn't it is largely because cloud vendors can't
               | bear to take less
               | 
               | Even if we choose to accept your original premise, I
               | think anti-competitive behaviour is much more likely than
               | "can't bear to take less".
        
               | doctorpangloss wrote:
               | New public IP charges and Kubernetes base pricing both
               | doubled my bill.
               | 
               | Spot pricing is kind of a black box, and it also makes no
               | sense.
        
               | hhh wrote:
               | When did EKS costs change?
        
             | unethical_ban wrote:
             | You moved the goalpost from "cloud is definitely more
             | expensive" to "well it isn't but maybe it will be for you
             | someday" and alluding to vendor lock-in.
             | 
             | Vendor lock-in is a concern with cloud platforms but
             | doesn't relate to the app in the submission.
        
               | doctorpangloss wrote:
               | It is always more expensive. I haven't moved any
               | goalposts. What I am trying to show is that you don't
               | need a tool - indeed you don't need to look at a single
               | price of anything - to know why. It can be both more
               | expensive and a better value though! If you can't recruit
               | people or what you do is boring or if you want to operate
               | a business that loses money in the long run: those are
               | some common reasons it can look cheaper when it's not.
        
               | YetAnotherNick wrote:
               | > It can be both more expensive and a better value
               | though!
               | 
               | No, it can't be. Stop with the pseudo intellectual
               | linkedin lingo please.
        
               | JackSlateur wrote:
               | Haa, yes, the scary "vendor lock-in" !
               | 
               | I challenge you : give me a single product that cannot be
               | moved away, given some (cost or time).
               | 
               | At the same time, I again challenge you : give me a
               | single product that you can move between providers with
               | no cost nor time.
               | 
               | To that last one, you can actually find stuff. For
               | instance, you could setup your nginx in instances,
               | without any kind of interactions with the hosting
               | provider. In which case, you limit yourself with what
               | everybody can do, leaving all opportunities to only use
               | the base minimal.
               | 
               | But wait .. are you not locked-in with nginx (or to use a
               | better example: with redis) ?
               | 
               | Vendor lock-in is a scam to increase your bills. Because,
               | in itself, _everything_ is vendor locking. And it does
               | not matter. Think your architecture, design your code,
               | and act when necessary.
        
               | candiddevmike wrote:
               | I don't think you've ever been through the pain of moving
               | a big, fully integrated, multiple ETL pipeline data
               | warehouse built on something like Redshift. Vendor lock
               | in is more about inertia and less about there not being
               | an alternative. Some things are just really, really
               | difficult to move and ridiculously impactful to change.
        
               | unethical_ban wrote:
               | You take the term "lock-in" far too seriously.
               | 
               | Yes, one can migrate their entire CI/CD ecosystem,
               | countless IAM policies across multiple AWS accounts in an
               | organization, their lambdas, databases and S3 buckets
               | over to Azure given enough time and money.
               | 
               | The thing is that most everything in the cloud is billed
               | on subscription, and many core components of networked
               | services need not be (except support). Open file server,
               | self-hosted IAM and standards-based execution stacks.
               | Don't like hosting your nginx on Vendor-A? Move it to
               | Vendor-B.
               | 
               | Yes, the tradeoffs are costs. No, vendor "lock-in" is not
               | the only component one should measure when deciding an
               | architecture. Yes, "lock-in" can occur with on-prem
               | software, and hardware, as well.
               | 
               | Yes, it's real and worthy of concern when a vendor knows
               | they can squeeze you because you have no other choice and
               | the level of effort to migrate is too high.
        
               | freedomben wrote:
               | You seem to be trying to reduce the vendor-lockin issue
               | to a binary "locked" or "not locked," but Idon't think
               | that's a productive or realistic way to think about it.
               | It's really more of a spectrum, and I prefer to think
               | about it as "options" rather than "are we locked." You
               | definitely have a lot more options if you go with Nginx
               | and the project turns evil than you would if you went
               | with some proprietary offering.
        
         | surfingdino wrote:
         | > Do you need a tool to tell you that the cloud is more
         | expensive?
         | 
         | Yes. If you want to make an argument for change in a business
         | environment you need numbers.
        
         | orochimaaru wrote:
         | It's the wrong question usually. The right question is how many
         | more features and what revenue growth would you get by using
         | cloud? How many less people would you need to employ? Would you
         | need to manage facilities - worry about hardware, power, diesel
         | generators, etc.?
         | 
         | Cloud is more expensive. But you're not stuck with capacity and
         | sysadmin tickets.
        
         | empath75 wrote:
         | This tool makes it relatively easy to find cost savings, and
         | also to do chargebacks. Most kubernetes clusters waste tons of
         | compute for no reason at all.
        
         | outworlder wrote:
         | > Do you need a tool to tell you that the cloud is more
         | expensive?
         | 
         | More expensive than what? Doing your own?
         | 
         | That depends on what you are doing. Often, the cloud is cheaper
         | if you factor in the human cost. I've seen many spreadsheets
         | that just quote the hardware costs.
        
           | Dalewyn wrote:
           | Not only is it potentially cheaper, it can be better than
           | rolling your own stuff in-house.
           | 
           | Kadokawa can tell you all about how their in-house shit
           | (literally, Japanese suck at computers) got pwned while the
           | stuff they had in the cloud (I hate the term, but it is what
           | it is) were unscathed.
           | 
           | Keeping in-house has its benefits, but the costs are also
           | steep.
        
       | notepad0x90 wrote:
       | there is a certain term well known amongst IBMers: "Blue washing"
       | 
       | R.I.P. Kubecost
        
         | diob wrote:
         | I'm now in IBM due to an acquisition.
         | 
         | It definitely is a company that can't do anything due to
         | bureaucracy / random bullshit.
         | 
         | You quickly understand why they acquire rather than invent.
        
           | _zoltan_ wrote:
           | I'm in Research and I beg to differ. (My own opinion.)
        
       | rafaelturk wrote:
       | Meanwhile, we're transitioning to on-premises infrastructure due
       | to the increasing complexity of cloud services. Kubernetes and
       | Docker are powerful platforms--we love them--but they were never
       | meant to be cost-driven. Kubernetes is already incredibly
       | efficient. However, surviving cloud costs and avoiding its traps
       | requires granular cost control--far beyond just monitoring RAM,
       | network, or CPU usage. It's become overwhelming.
       | 
       | In a nutshell, any K8S deployment on-premises tends to be
       | inherently optimized, saving a significant amount of time and
       | resources. I have new servers and old servers in the same
       | cluster, that is epic.
       | 
       | Modern FinOps often feels like a frustrating exercise: Should I
       | choose 2x 2XXL instances or 4x 8XL instances? The conversation
       | rarely focuses on optimizing software performance or database
       | efficiency. Instead, the cloud has turned into a maze of cost
       | centers, where it's easy to get lost in 'managing' the cloud
       | rather than building valuable products for end users.
        
         | rafaelturk wrote:
         | IBM thrives on complexity--that's the core of many of their
         | products and business model. The fact that even they are
         | getting into 'cloud cost optimization' should be a signal for
         | everyone to rethink public cloud strategies.
        
         | liveoneggs wrote:
         | sorry optimizing sql queries isn't a priority this quarter,
         | could you write a business justification for it so we can ask
         | in the next sprint planning if it can be scored against our
         | business needs?
         | 
         | thanks!
         | 
         | p.s. we got some complaints about slowness on a few pages. can
         | you schedule some time to sync up and take a look? we need to
         | get this solved!
        
           | rafaelturk wrote:
           | That's exactly my point. Instead of optimizing software,
           | FinOps nowadays focuses on optimizing costs. While they might
           | seem similar, they couldn't be more different. We spend 100%
           | our time optimizing our software, databases, etc. if we need
           | more capacity we just add a new server to the cluster. But
           | this hard on the cloud, easy onprem.
        
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