Re:A bit of math around Cloudflare's R2 pricing model
by judge2020 on Thursday September 30, 2021 @01:02AM
(#28703368)
> That is certainly almost all pure margin for them,
Yes. While there is a pretty hefty up-front cost to all the hardware and fiber interconnects AWS makes between servers, between AZs, and to the internet (probably in the millions per-dc including labor), the margin they charge per-gb is insanely high to the point where they likely made all of it back within the first day it was installed, with any extra usage in the years after being pure margin.
Yes. While there is a pretty hefty up-front cost to all the hardware and fiber interconnects AWS makes between servers, between AZs, and to the internet (probably in the millions per-dc including labor), the margin they charge per-gb is insanely high to the point where they likely made all of it back within the first day it was installed, with any extra usage in the years after being pure margin.
https://blog.cloudflare.com/aws-egregious-egress/