Re:Ask HN: Is your company sticking to on-premise servers? Why?
by jesterson on Friday May 08, 2020 @02:36AM
(#23112012)
Exactly that. A lot of people do not understand that and get into trap of those credits "thousands of dollars worth" just to be scalped by their vendor-locked costs after those credits vanish.
After all people who make decision on customer side are in same trap - in 3-5 years if not earlier they won't be at the company anymore and it won't be their problem.
So assume you're doing a 3-year or 5-year TCO -- you build in credits, discounts, and bundled options. Execs are looking for a 3-year apples-to-apples spend, and you make your TCO look fucking amazing. They see the low price and decent technical options and they bite.
3 years later those credits vanish and they're paying full OpEx costs. And after 3 years they're now invested -- stuck -- in their space/circuit/whatever. You can start raising the price or negotiating new contracts.
Same thing with the cloud, for that matter. Cut a glorious bulk deal with Microsoft for Azure space, and then after you've moved everything to MS they can start nickle and diming you -- cuz the cost of moving that load to AWS or GCP isn't cheap, and you're not going out and buying more hardware and going back to CoLo are you?