In other words, when they "educate" young people about "The Cloud" and how is "The Best Way, the Only Way", they win because after a few years people got used to AWS as a fact of life and young professionals don't know how to administer a Linux box anymore.

The scale of the networks these companies are building is unlike any of the novice-level stuff companies like Hetzner deploy. As one example, in one region AWS has deployed 5 Pbps of inter-AZ fiber. They build all of their own SDN switches/routers, all the way down to the chips now, for maximum performance and configuration with the AWS API. And don't forget, they maintain a GLOBAL private network; companies like Hetzner or DigitalOcean just peer to the internet to connect their "regions".

I'll keep saying this on HN until people start listening: If you buy AWS then complain about price, you might as well go buy a Porsche then complain about the price as well. They're the best. Being the best is expensive.

I'm not buying a porsche and complaining about the price, I'm buying a car and complain it requires me to drive on roads made by the manufacturer and none of the parts are properly standardized and some things are expensive for no good reason.

Overall I'd say Azure is the only real competition to AWS as a product (where they are often the most willing to negotiate a big deal), but googles open source efforts potentially pose a risk.

I don't require a data warehouse, load balancers (beyond HAProxy on the same host) or SOC Compliance at the moment, if I need those, I can build them.

Not all businesses go for the cheapest option but on the flipside if Amazon costs 80x of other providers, the business will probably just find two sysadmins and contract them for the work.

Even if you need bigger, load balancers are available as hardware, they're fairly cheap compared to AWS offerings and come with in-built firewall. Incoming traffic remains free on these. Your ISP will probably peer much cheaper than AWS and Hetzner if you're bringing enough money to justify it.

I know several corporations that do their entire IT out of AWS, some of them use inhouse and others scatter their usage across several cloud providers, AWS would likely increase their operating cost by 100x.

Where is this 80x-100x coming from? It would be impossible to create a 100 times cheaper solution because it would mean there is no margin left for the hosting provider.

80x is on traffic costs alone, I've detailed that above; 80$ for 1TB of traffic on AWS, not including incoming traffic costs, 1$ for 1TB of traffic on Hetzner, incoming traffic is free.

A 16core/64GB instance (m5.4xlarge) on AWS costs 360$ monthly, a tiny bit cheaper if you buy upfront. I pay 50$ a month for 16core/128GB/2TB. The 2TB storage would have to be paid extra on AWS. The m5a.4xlarge is a tad cheaper at 320$ monthly cost, again not counting for storage and bandwidth costs. I get double the RAM and lots of storage for less than 30% of the cost.

So on traffic, it's 80x cheaper, the instance is barely 30% the cost of AWS, and that's not counting the storage costs, which are very high on AWS compared to other providers (OVH, B2). And that only gets cheaper once you buy volume.

Of course the number 80-100x doesn't apply to me personally since I'm running a fairly low-scale operation but this all starts to stack up once you go large. A colo is even cheaper than any of these options since you only pay for power used and for hardware once.

Just for a more apples to apples comparison.

I guess the reason ppl don't "see" the insane premium clouds place on bandwidth is that bandwidth scales up with (presumably paying) customers. So as long as you're not streaming 4k video... You're happy to let the cloud eat out of the bit of your profits that "scales up".

The real big cost in any organization is head count. And while a load balancer is not difficult to setup and maintain the first time, managing it becomes time consuming in a large enough organization. Couple that with everything else...

If someone can replicate what AWS is doing at a lower cost, people would move to them. But there are few companies out there that come close. Bandwidth cost is generally not your biggest expense.

This is incorrect. AWS does not charge for incoming traffic nor does it charge for internal traffic within the same zone.

Incoming traffic is charged on a few AWS applications, not EC2, but some do.

That doesn't really change the point though; AWS Networking is magnitudes more expensive than competitors and they bill for things that are accepted as part of the service in other places.