Re:Cloudflare's Disruption
by nindalf on Friday October 01, 2021 @01:49AM
(#28715075)
Like others have pointed out, it’s not about the margins on egress. Cloudflare claims that AWS marks up egress by 4-17x depending on the region, but this isn’t about making money off egress directly. It’s about creating a moat around all AWS services. If you’re already using some services inside the moat, you’re strongly encouraged to use the other services within the moat.
If your data is in S3 or DynamoDB, egress fees will encourage you to process the data within AWS. You’re not going to use BigQuery for that. If you want to add a search index on that, you won’t go shopping around for search products on other clouds, you’ll likely use AWS elasticsearch. That’s where AWS makes money - through this soft lock-in.
They’ll survive and maybe even thrive if they lose the revenue from egress. But who knows what’ll happen if the moat is destroyed? Every AWS service would need to compete on merit with every service on other clouds. They won’t be chosen simply by default.
If your data is in S3 or DynamoDB, egress fees will encourage you to process the data within AWS. You’re not going to use BigQuery for that. If you want to add a search index on that, you won’t go shopping around for search products on other clouds, you’ll likely use AWS elasticsearch. That’s where AWS makes money - through this soft lock-in.
They’ll survive and maybe even thrive if they lose the revenue from egress. But who knows what’ll happen if the moat is destroyed? Every AWS service would need to compete on merit with every service on other clouds. They won’t be chosen simply by default.