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> Most people using the cloud aren't really that cost concious. EC2 is about 8x the cost of bare metal... I've heard these claims before, but I think people a

> Most people using the cloud aren't really that cost concious. EC2 is about 8x the cost of bare metal... I've heard these claims before, but I think people are not doing the correct math. I would love to be proven wrong. It is not about computing the costs of hardware + depreciation + redudant power, adding together and calling a day. You have to add: – All the engineers that will be maintained your baremetal datacenter. If you are using a colo, use their costs – Downtime caused by mundane issues that you simply do not see on AWS. Yes, a single hypervisor will go bad. You fix that in _minutes_ by stopping and starting your instance. Yes, VMWare or OpenStack (with networked storage!) could do that, but know what you also won't have to do? Deal with suppliers. – The ability to quickly scale up and down according to your load. I can fire up 30 servers with a single terraform script and tear them down before your hardware supplier even returned your call. There's noone on my end racking and stacking anything. – Downtime when shit breaks. If you have 5 thousand engineers impacted because of a maintenance mishap knocked out power to a datacenter and cascaded to the backups, you'll quickly burn through your savings. I could go on. There are scenarios where on prem makes sense, but one should not dismiss it outright without accounting for the additional risks you are incurring and quantifying those. One thing that people often forget (and I have to keep reminding people about) is that a single Availability Zone on AWS is composed of multiple datacenters, not just one. And you have multiple AZs. Heck, if you are deliberate about it you can even recreate your entire stack in a different region entirely. It is not apples to apples. You may not need them, but if you do, cloud providers offer capabilities you are unlikely to replicate yourself. Specially if it's not your core business. More to the point: even if your 8x figure is correct, the AWS Elastic offering adds a premium _on top of that_ . So they have to offer better capabilities than you can build yourself to account for the premium – in my experience the extra cost is hard to justify (it can make sense, but it is not as clear as EC2)

dc2447 7y ago
8x is close to the top end, somewhere between 3x and 10x depending on a number of factors, mostly scale. For the record I factor in: - Hardware depreciation (36mo) - Power - People - DC rent + power - software licences / support for on premise. What we see now is that compute is dropping in price for on prem every year and density is improving. AMD Rome brings incredibly bang for your buck when buying at significant scale. But it's not comparing Apples with Apples. It's virtually impossible to accurately factor in the opportunity cost of doing all this yourself but you can potentially hire a bunch of engineers with the savings of going on prem, ymmv You can never ever recreate the developer experience on prem regardless of your scale, on you can tell if on prem is good enough It's difficult to put a value on being to pay as you go or suddenly be serving workloads out of a geo close to your users in Cloud where on prem there is always a lead time Finally whilst the developer experience is better suddenly having to deal with new challenges takes a while to adjust in Cloud, outages out of your control, non predictable performance, poor support, no access to your hardware TLDR: Cost is hard to define and isn't a zero sum game

dc2447 7y ago

8x is close to the top end, somewhere between 3x and 10x depending on a number of factors, mostly scale. For the record I factor in: - Hardware depreciation (36mo) - Power - People - DC rent + power - software licences / support for on premise. What we see now is that compute is dropping in price for on prem every year and density is improving. AMD Rome brings incredibly bang for your buck when buying at significant scale. But it's not comparing Apples with Apples. It's virtually impossible to accurately factor in the opportunity cost of doing all this yourself but you can potentially hire a bunch of engineers with the savings of going on prem, ymmv You can never ever recreate the developer experience on prem regardless of your scale, on you can tell if on prem is good enough It's difficult to put a value on being to pay as you go or suddenly be serving workloads out of a geo close to your users in Cloud where on prem there is always a lead time Finally whilst the developer experience is better suddenly having to deal with new challenges takes a while to adjust in Cloud, outages out of your control, non predictable performance, poor support, no access to your hardware TLDR: Cost is hard to define and isn't a zero sum game