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Bandwidth is not that expensive. Cloud providers have brainwashed people that basic egress should be 10c/gb or more. In reality, volume pricing and sustained us
by qeternity 6y ago
Bandwidth is not that expensive. Cloud providers have brainwashed people that basic egress should be 10c/gb or more. In reality, volume pricing and sustained use drops that massively.
Cloudflare has managed to build a massive business on the back of giving away a lot more bandwidth.
- bastawhiz 6y agoEven if it was an order of magnitude less than what AWS charges, it's still not free. I pay $4k/mo to Cloudflare for an amount of bandwidth I can easily see Skypack pulling down, and I'm able to pay for that with a sizable base of paying customers. Even if they charged $1/mo, they'd be infinitely better off than where they are now. Giving away something that's cheap is not a good business model, especially when the thing that's cheap doesn't hit meaningful economies of scale until well after it's not cheap anymore.
- stingraycharles 6y agoCloudFlare also lost a lot of money by giving away the bandwidth, but they consider it an important marketing tool. It still is a loss leader to them, at least according to their S-1 last year.