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Why do people buy coffee from Starbucks? Is it because Starbucks has the most efficient cost outlay for long term investment in a user's needs? Or is it becau
by peterwwillis 6y ago
Why do people buy coffee from Starbucks?
Is it because Starbucks has the most efficient cost outlay for long term investment in a user's needs?
Or is it because people just want some damn coffee and there's one on every corner?
Or is it because, in a world full of places to buy coffee, one place gives you everything you could ever dream of in a coffee place?
That is what the big cloud providers are. They are Starbucks. They are not the cheapest. They aren't even the best. But they are everything you want.
If your company gets Starbucks-huge, you don't need to buy your coffee from Starbucks. You have your own deals with roasters and your own supply chains and baristas and coffee logistics experts.
That's why some companies build their own. Not because it's a better idea (it's not), or because Starbucks costs too much (compared to the investment in re-creating Starbucks?). It's because they are a business that effectively makes their own coffee already, so it makes no sense to pay Starbucks for it. Of course, they won't have a Starbucks once they make their own coffee, but they will have served their needs well enough.
- georgyo 6y agoThis is not a great analogy. Sure people go to Starbucks for one off coffees and sure some do that exclusively. But almost every startup to enterprise company has an expresso machine in the kitchen. So in most cases, if I want a coffee I don't go to Starbucks. They I go to the kitchen, it's faster, cheaper, and more convenient than going to Starbucks. However, if I'm out and about it doesn't make sense for me to invest in temporary coffee infrastructure. In those cases it's easier to go to a cafe like Starbucks. This matches the idea of the article. If you have consistent demand it makes sense to buy infrastructure to meet that demand. But if the project is temporary or extremely bursty it may make sense to have someone else do it for you.