Re:Reduced Pricing on Azure Storage - Price Matching Amazon ...
by pipeep on Friday January 24, 2014 @11:14PM
(#7119823)
I'd expect DigitalOcean's bandwidth is still at quite a bit of a profit.
I run a reliable Tor relay with a 12TB allocation for $7/mo, admittedly from a sketchy provider, of which I use almost the entire allocation. My main hosting provider (for my website, email, etc) sells shared gigabit bandwidth at $2.50/TB, half DO's price, which they apparently still make a profit on.
On top of that, DO is doing this on a much larger scale than many of these other companies, which should allow them to obtain better prices.
Re:Reduced Pricing on Azure Storage - Price Matching Amazon ...
by catinsocks on Friday January 24, 2014 @10:43PM
(#7119751)
Idk about the pricing but can you use all that bandwidth in a reasonable time period?
Can DO's pipes handle a sustained load of whatever a 16core 48gb ram machine can handle without their pipe being the bottleneck?
If not maybe that is part of the reason AWS can charge so much for bandwidth.
To match DO with AWS on bandwidth cost, you need to burn a few petabytes.
10tb on AWS? $1,200. Given how cheap bandwidth is these days, that's beyond outrageous. Amazon is charging for bandwidth roughly a hundred times what it costs them.
Now let's say you're actually heavy utilizing DO, so you've got one of their bigger plans and burn up plenty of bandwidth. Their $480 plan comes with 8tb, and the extra 2tb (to match 10tb on AWS), will cost you a mere $40. 16 cores, 48gb of ram, 10tb of bandwidth, for $520.
Of course it's understood people use AWS for reasons other than price.