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Try running any service with an average egress exceeding 10 Mbit/s then tell me cloud still makes sense. By the time you reach 1 Gbit/s the very idea of it is e

Try running any service with an average egress exceeding 10 Mbit/s then tell me cloud still makes sense. By the time you reach 1 Gbit/s the very idea of it is enough to elicit a primitive biological defensive response. We don't do on-prem but we do make heavy use of colo. The thought of cloud growth and DC space consolidation some day pushing out traditional flat rate providers absolutely terrifies me. At some point those cloud premiums will trickle down through the supply chain, and eventually it could become hard to find reasonably priced colo space because the big guys with huge cash-flush pockets are buying up any available space with a significant premium attached. I don't know if this is ever likely, but growth of cloud could conceivably put pressure on available physical colo space. Similar deal with Internet peering. There may be a critical point after which cloud vendors, through their sheer size will be able to change how these agreements are structured for everyone.

jedberg 6y ago
Netflix runs on the cloud and does 30% of all internet traffic. That being said, 99% of that traffic is served from servers in colos now, but 10 years ago it was all served from CDN providers like Akamai, which is just a specialized cloud.
- toomuchtodo 6y ago
  This is kind of a big caveat (“Netflix is in the cloud but almost none of the work is done there”), and something I have to mention to non tech decision makers when they say “but Netflix!”. I even have a slide for presentations just for this (“You Are Not Netflix”).
  - jedberg 6y ago
    99% of the work is done on the cloud. What comes off of those colo servers is literally just bits streaming from disk to network. There is no transformation or anything. No authentication, no user accounts, no database. Nothing. Just static files served efficiently.
    - AgentK20 6y ago
      For models where static files need to be served efficiently, using cloud compute and aggressive CDNs works great. For any model where you've got volatile data that can't be cached (Gaming, VOIP, etc) you're tough out of luck.
      - jedberg 6y ago
        For sure. There are absolutely use cases where the cloud doesn't make sense. Most businesses out there aren't those kinds of businesses.
    - enneff 6y ago
      > What comes off of those colo servers is literally just bits streaming from disk to network So... the core of their business?
      - jedberg 6y ago
        Not at all. It was so “not core” that it was outsourced. The core of their business is recommendations, encoding, and authentication. All of those are done 100% on the cloud.
        sidibe 6y ago
        Sure but probably 99% of the > 30% of all internet traffic. is outside of the cloud.
        anshumania 6y ago
        Anyone know the bill Netflix has for running on the cloud ?
    - ClumsyPilot 6y ago
      That'a very significant, nevertherless. For workloads that arw not diverae in terms of software, but simply burn CPU, Ram and network, cloud is not cost effective
- ldng 6y ago
  Do you really think Netflix get the standard billing prices ? I very much doubt so.
- d23 6y ago
  I don't think most of the replies realize that you might be pretty familiar with Netflix's infrastructure.

jedberg 6y ago

Netflix runs on the cloud and does 30% of all internet traffic. That being said, 99% of that traffic is served from servers in colos now, but 10 years ago it was all served from CDN providers like Akamai, which is just a specialized cloud.

toomuchtodo 6y ago
This is kind of a big caveat (“Netflix is in the cloud but almost none of the work is done there”), and something I have to mention to non tech decision makers when they say “but Netflix!”. I even have a slide for presentations just for this (“You Are Not Netflix”).
- jedberg 6y ago
  99% of the work is done on the cloud. What comes off of those colo servers is literally just bits streaming from disk to network. There is no transformation or anything. No authentication, no user accounts, no database. Nothing. Just static files served efficiently.
  - AgentK20 6y ago
    For models where static files need to be served efficiently, using cloud compute and aggressive CDNs works great. For any model where you've got volatile data that can't be cached (Gaming, VOIP, etc) you're tough out of luck.
    - jedberg 6y ago
      For sure. There are absolutely use cases where the cloud doesn't make sense. Most businesses out there aren't those kinds of businesses.
  - enneff 6y ago
    > What comes off of those colo servers is literally just bits streaming from disk to network So... the core of their business?
    - jedberg 6y ago
      Not at all. It was so “not core” that it was outsourced. The core of their business is recommendations, encoding, and authentication. All of those are done 100% on the cloud.
      - sidibe 6y ago
        Sure but probably 99% of the > 30% of all internet traffic. is outside of the cloud.
        anshumania 6y ago
        Anyone know the bill Netflix has for running on the cloud ?
  - ClumsyPilot 6y ago
    That'a very significant, nevertherless. For workloads that arw not diverae in terms of software, but simply burn CPU, Ram and network, cloud is not cost effective
ldng 6y ago
Do you really think Netflix get the standard billing prices ? I very much doubt so.
d23 6y ago
I don't think most of the replies realize that you might be pretty familiar with Netflix's infrastructure.