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The margins you're paying for include functionality you don't use and your own cost of integration, observation, and management of their stuff. The principal a

The margins you're paying for include functionality you don't use and your own cost of integration, observation, and management of their stuff. The principal advantage of using a cloud provider is avoiding capital costs and any useful apis they have that you'd otherwise have to develop/maintain in-house.

supernovae 9y ago
There are lots of open source products that offer programmatic/desired state/idempotent config & apis for provisioning and hardware lifecycle management in private dc.
- user5994461 9y ago
  There are not even close to how good and mature the AWS tools are.
notyourday 9y ago
The most fun thing about startup world is that it pretends that normal rules of economics and accounting do not apply to it (until a startup runs out of money) $X in CapEx makes balance sheet look better than $X in OpEx.
- lallysingh 9y ago
  As generously as I can put it: It's a form of denial that people use when overwhelmed with everything else. There's typically too little real data on what the money's going to look like until a bunch of things are tried out, each essentially a random variable. So instead of freaking out about that, just bandage over it with some lies to yourself until you can actually start addressing it. Businesses in well-known markets can start estimating their costs + potential revenue early, and optimize early. But for a business that might "pivot" a few times before finding "fit", how do you do it? You just look at time (runway: burn rate * remaining capital) you have to try stuff. It's not great, but I can understand why some people do it.
  - notyourday 9y ago
    If you need to pivot before you are cashflow positive, then you dont have a business and you never had a business. I keep being amazed that total business failures that result in pivots are considered to be successes in the startup world.

supernovae 9y ago

There are lots of open source products that offer programmatic/desired state/idempotent config & apis for provisioning and hardware lifecycle management in private dc.

user5994461 9y ago
There are not even close to how good and mature the AWS tools are.

notyourday 9y ago

The most fun thing about startup world is that it pretends that normal rules of economics and accounting do not apply to it (until a startup runs out of money) $X in CapEx makes balance sheet look better than $X in OpEx.

lallysingh 9y ago
As generously as I can put it: It's a form of denial that people use when overwhelmed with everything else. There's typically too little real data on what the money's going to look like until a bunch of things are tried out, each essentially a random variable. So instead of freaking out about that, just bandage over it with some lies to yourself until you can actually start addressing it. Businesses in well-known markets can start estimating their costs + potential revenue early, and optimize early. But for a business that might "pivot" a few times before finding "fit", how do you do it? You just look at time (runway: burn rate * remaining capital) you have to try stuff. It's not great, but I can understand why some people do it.
- notyourday 9y ago
  If you need to pivot before you are cashflow positive, then you dont have a business and you never had a business. I keep being amazed that total business failures that result in pivots are considered to be successes in the startup world.