News for hackers. Stuff that matters.
Re:Tech Layoffs Are Feeding a New Startup Surge by SassyGrapefruit on Friday February 24, 2023 @09:35AM (#34924855)
I would like to see some real numbers on this. I spend between $5 and $6 million a year on infrastructure. I have a physical datacenter in a Colo and two clouds AWS and Azure. I have detailed KPIs on my spend. One of the KPIs is total cost of ownership of an instance or server. My physical instances cost 3 times as much as the exact same compute in the cloud.

This is because I have to factor all the costs. This includes electricity, maintenance, incident response, networking, renting the cage, vendored software for backups, threat detection, fire suppression, equipment upgrades, licensing, alerting, and it goes on and on and on...

I'd challenge you to break down the full cost of owning a server as you see it. I bet you will miss 75% of the actual costs involved. I promise short of seizing a colo like its Nakatomi Plaza and running it at gunpoint you will never in a million years come close to the total ownership cost of cloud instance. You can't compete with the economies of scale and the caliber of the engineering.

Re:Tech Layoffs Are Feeding a New Startup Surge by jdlshore on Friday February 24, 2023 @11:03AM (#34925884)
37signals disagrees. They’re moving off the cloud and have published several blog entries about the process and the approx ~1mm/yr (fully loaded) they expect to save.

I don’t have a horse in this race, but it’s interesting that your experiences are so different. Would love to hear your take on their numbers.

The most recent article, with lots of hard numbers, is here:

https://dev.37signals.com/our-cloud-spend-in-2022/

There was a recent article that made the HN in front page that broke down the savings they expected, but I’m on mobile and can’t find it now. Something about “two datacenter racks.”

Re:Tech Layoffs Are Feeding a New Startup Surge by SassyGrapefruit on Friday February 24, 2023 @11:31AM (#34926307)
Where are the numbers and how do they calculate them? This article lists their cloud spend in detail then "waves hands" at the Datacenter costs by say "it will be far far less". Ok why not break it down?
Re:Tech Layoffs Are Feeding a New Startup Surge by dilyevsky on Friday February 24, 2023 @01:16PM (#34927780)
I’ve done the modeling down to pulling actual quotes in my area and with a decent footprint (like couple hundred xxlarge instances) you break even after a year (including colo, remote hands and networking). Cost is decisively not the reason most orgs choose public cloud
Re:Tech Layoffs Are Feeding a New Startup Surge by jdlshore on Friday February 24, 2023 @04:26PM (#34930362)
Here's their article. "We stand to save $7m over five years from cloud exit."

https://world.hey.com/dhh/we-stand-to-save-7m-over-five-year...

Re:Tech Layoffs Are Feeding a New Startup Surge by SassyGrapefruit on Monday February 27, 2023 @11:47AM (#34958636)
>But this isn't just about cost. It's also about what kind of internet we want to operate in the future. It strikes me as downright tragic that this decentralized wonder of the world is now largely operating on computers owned by a handful of mega corporations.

Yep read that guys blog history and the agenda just pops right out. It's not just about cost for Basecamp its ideological. I can't help but imagine this bias leaks into the financial and operational calculations.

We had a similar situation. We had a team did not want to move to the cloud, the business forced them, so they built the system in a way that fought the cloud. Then the self fulfilling prophecy kicked into high gear. "See we told you it was a bad idea, look at all the problems we have!". The problems were created through half baked attempts to be "agnostic" to the cloud. Once we removed those elements we were able to reduce the cost of the system by over 90%. It was far cheaper than when it was running in the Colo. These folks had no interest in optimizing for cloud native execution they were already planning their move back into the Colo.