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I feel like you have this a little backwards. Surely AWS has done the work to show the savings from their services vs rolling your own. It's a little silly to j
by mrkurt 6y ago
I feel like you have this a little backwards. Surely AWS has done the work to show the savings from their services vs rolling your own. It's a little silly to just assume proprietary AWS services are an overall cost savings and ask for proof that it's not true.
And, most of what you're talking about doesn't really affect margins for a SaaS. Every AWS service hits margins, one time migration costs and even R&D time to build products does not. The marginal cost of using AWS underneath interesting features is very high.
- scarface74 6y agoPeople cost money. You can buy a lot of services on any of the cloud providers if you can save the fully allocated cost of one employee - say $180K. That’s just looking around in any major city in the US, not west coast salaries. Every dollar you spend on R&D or migrations you have to consider whether that dollar could be better invested somewhere else and whether it adds business value to have the expertise in house or to outsource it. Dropbox and Backblaze for instance decided that storage was a core competency. Dropbox moved away from AWS and backblaze knew from day one not to get on it. On the other hand Netflix went the other way and is now AWS’s largest customer.