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Sounds like you're listing the enterprise features people pay for. If Amazon sells it so cheaply why don't enterprises go direct to Amazon instead of paying a S
by an_opabinia 6y ago
Sounds like you're listing the enterprise features people pay for. If Amazon sells it so cheaply why don't enterprises go direct to Amazon instead of paying a SaaS provider like you?
It's about economics not accounting.
Once you get into cost comparisons you've already lost. AWS is purpose built for an accounting narrative.
To illustrate what a dead end accounting is, accounting can't explain things like, "I spend money today to possibly make money more than 1 year in the future." That's basically every startup and accounting doesn't have a story for it.
Of course a free tier looks good accounting-wise. How does one "account" for lock-in though? If you can't figure that out you will not convince bean counters to consider alternatives.
And good luck teaching economics (as opposed to accounting) to bean counters.
Here are a few compelling explanations: the cheapest bid (i.e. free tier) is always the worst one. Some people are so addicted to accounting storytelling - as a way to organize their world, a whole philosophy - they are actually always convinced the cheapest bid is always the best one.
Another: AWS is so overpriced, the $50k you spend on developing against AWS services to use $500k of "free credits" will deliver less value than $50k you spend developing for a single vertically scaled beige box computer with simple ergonomics and running it.
- romanoderoma 6y agoDon't know why you are being downvoted, but I agree with your reasoning. I've worked most of my career in places where technology was king and AWS is certainly technologically ahead of its competitors. Fast forward a couple decades and I ended up in financial institutions where economics is king and they don't use AWS, not as much as they should, if you listen to the average internet guru. Not because AWS doesn't do what they say it does, but because economically it's not advantageous, at least until it is. Which is not at the beginning. To put it in simple words: they don't ask "are we ready to scale" but instead "are we making money out of this".