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A comment on Snap Inc. Third Quarter 2017 Results. Parent comment

Re:Snap Inc. Third Quarter 2017 Results by mizzao on Wednesday November 08, 2017 @01:39AM (#15650314)
Snap is paying Google $400m a year for hosting costs... https://techcrunch.com/2017/02/02/snap-commits-2-billion-ove...

Seems like at that point it might be cheaper to run your own datacenters?

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Re:Snap Inc. Third Quarter 2017 Results by joshmn on Wednesday November 08, 2017 @03:48AM (#15650713)
Your own DC, sure, but to build out an entire cloud platform? Even with OpenStack and the like, it's anything but trivial.
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Re:Snap Inc. Third Quarter 2017 Results by tim333 on Wednesday November 08, 2017 @08:52AM (#15652358)
I'm puzzled by that - if it's $400m/yr then cost per user should go down as you have more but they seem to be reporting the opposite. ("Hosting costs per DAU were $0.68 in Q3 2017 as compared to $0.64 in Q3 2016")
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Re:Snap Inc. Third Quarter 2017 Results by runeks on Wednesday November 08, 2017 @02:21AM (#15650432)
> Seems like at that point it might be cheaper to run your own datacenters?

Depends on whether they acquire new users in the future. Their hosting costs are fixed, so doubling their user count would halve their per-user costs.

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