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> Does someone know why Google Cloud can afford to be so much cheaper compared to AWS? They have better hardware utilisation and a lot of their infrastructure
by jacques_chester 10y ago
> Does someone know why Google Cloud can afford to be so much cheaper compared to AWS?
They have better hardware utilisation and a lot of their infrastructure was fully-depreciated before they opened GCP.
Unlike AWS, Google couldn't design systems assuming a customer would bear the price of any moderate inefficiencies. So they've had more design pressure on cost from the beginning.
I also suspect their cost of networking is much lower -- they own their own fibre network and a lot of it will also be fully-depreciated.