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Thank you for this. I’m surprised that CloudFlare didn’t mention it in an otherwise thorough post. After all, the reason they’re trying to pressure AWS to chang
by nindalf 5y ago
Thank you for this. I’m surprised that CloudFlare didn’t mention it in an otherwise thorough post. After all, the reason they’re trying to pressure AWS to change is that they’d like to offer services to AWS customers without bandwidth markup. Essentially competing with existing AWS services on an even footing.
This to me makes it unlikely that AWS will change their bandwidth pricing. If it was just about this revenue source disappearing, they might bite the bullet and hope that the lower prices would attract more customers in the long term. But bandwidth pricing is the moat around their castle. If it didn’t exist, Snowflake and others would leave. But more than that, new AWS services benefit from the captive audience choosing them by default. Without the moat, each service has to compete on its merits. AWS Lambda, for example would need to be better than CloudFlare Workers or fly.io containers. It won’t win customers like it does today just because it’s “free” bandwidth.
Removing these fees is a risk AWS is currently choosing not to take. And they won’t change their pricing regardless of the number of blog posts that competitors write. The only thing that would force a change is an exodus of customers leaving AWS citing this as a reason.
- ksec 5y agoAnd I always thought they will drop the price of their EC2 some day to balance things out. But nope. I am wondering if Amazon could introduce a bandwidth cost rebate, where the bandwidth cost would be subtracted from your final bill at a maximum of 30% of your total VM bill. But it is like Apple, once you have a monopoly like market they just dont need to. Amazon is buying as many TSMC capacity as they could as demand for Graviton 2 is way above their projected expectation. It seems they are still growing at such a pace despite their size.
- Sanguinaire 5y agoThe rebate you mention sort of already exists, just restricted to public sector research customers. Think the cap is that egress is waived as long as it is less than 15% of the bill.
- silexia 5y agoAWS looks like a ripe target for Biden's new emphasis on antitrust and competition in business
- antb123 5y agoExcept unlike google play for android there are a lot of competitive alternatives.