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If it's overpriced, presumably customers will shop elsewhere or avoid cloud services altogether?

by freyir 10y ago

deleted 10y ago
[deleted]
runeks 10y ago
When overpricing happens, it's usually because the customers had nowhere else to go in the first place. I guess the amount you can overprice is proportional to the value you add. But then is it really over pricing?
adventured 10y ago
It's significantly overpriced, though most services don't demand enough bandwidth to make it a big enough cost disadvantage to turn them away from eg AWS. That isn't the case for all services, but it is the case for most. If you're big enough to run up a large bandwidth bill on AWS, more often than not you can afford it; if you're not big, you won't typically be running up that kind of bandwidth bill. There are cases that are the exception of course (high traffic services with poor business models, video heavy sites with weak monetization, etc). I've seen good arguments that the cloud services keep bandwidth costs high on purpose to restrict the types of services that attempt to use (or abuse) their networks. I haven't seen any other great arguments that explain the massive gap between a typical large dedicated host and eg Azure / Google / AWS (all of which can command far cheaper bandwidth costs).
- vgt 10y ago
  I can speak for Google, not AWS or Azure. Google's network is smart in several ways: - If you are trying to send a packet from one Google AZ to another, it will traverse Google network only, never hitting the public web.. without a VPN/VPC setup - If you are trying to reach a service on Google Network, you hit the Google frontend at one of the many Points of Presence around the world, from which point it's a straight path to nearest DC - If you are trying to reach a customer from your VMs on Google, your packet will be taken as close to your customer as possible on Google backbone For "cheaper egress" there are CDN providers, and both AWS and Google have their own CDNs as well.

If it's overpriced, presumably customers will shop elsewhere or avoid cloud services altogether?

by freyir 10y ago

If it's overpriced, presumably customers will shop elsewhere or avoid cloud services altogether?

deleted 10y ago

[deleted]

runeks 10y ago

When overpricing happens, it's usually because the customers had nowhere else to go in the first place. I guess the amount you can overprice is proportional to the value you add. But then is it really over pricing?

adventured 10y ago

It's significantly overpriced, though most services don't demand enough bandwidth to make it a big enough cost disadvantage to turn them away from eg AWS. That isn't the case for all services, but it is the case for most. If you're big enough to run up a large bandwidth bill on AWS, more often than not you can afford it; if you're not big, you won't typically be running up that kind of bandwidth bill. There are cases that are the exception of course (high traffic services with poor business models, video heavy sites with weak monetization, etc). I've seen good arguments that the cloud services keep bandwidth costs high on purpose to restrict the types of services that attempt to use (or abuse) their networks. I haven't seen any other great arguments that explain the massive gap between a typical large dedicated host and eg Azure / Google / AWS (all of which can command far cheaper bandwidth costs).

vgt 10y ago
I can speak for Google, not AWS or Azure. Google's network is smart in several ways: - If you are trying to send a packet from one Google AZ to another, it will traverse Google network only, never hitting the public web.. without a VPN/VPC setup - If you are trying to reach a service on Google Network, you hit the Google frontend at one of the many Points of Presence around the world, from which point it's a straight path to nearest DC - If you are trying to reach a customer from your VMs on Google, your packet will be taken as close to your customer as possible on Google backbone For "cheaper egress" there are CDN providers, and both AWS and Google have their own CDNs as well.