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Snap is paying Google $400m a year for hosting costs... https://techcrunch.com/2017/02/02/snap-commits-2-billion-over-5-years-for-google-cloud-infrastructure/ h

by mizzao 9y ago

Snap is paying Google $400m a year for hosting costs... https://techcrunch.com/2017/02/02/snap-commits-2-billion-over-5-years-for-google-cloud-infrastructure/ https://techcrunch.com/2017/02/02/snap-commits-2-billion-ove... Seems like at that point it might be cheaper to run your own datacenters?

runeks 9y ago
> Seems like at that point it might be cheaper to run your own datacenters? Depends on whether they acquire new users in the future. Their hosting costs are fixed, so doubling their user count would halve their per-user costs.
joshmn 9y ago
Your own DC, sure, but to build out an entire cloud platform? Even with OpenStack and the like, it's anything but trivial.
tim333 9y ago
I'm puzzled by that - if it's $400m/yr then cost per user should go down as you have more but they seem to be reporting the opposite. ("Hosting costs per DAU were $0.68 in Q3 2017 as compared to $0.64 in Q3 2016")