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> The facilities team was about 6 people, average salary around $90k. Ok so $540k salaries + benefits, so ~$700k. Then you have transaction costs: - Annual sa
by mbesto 5y ago
> The facilities team was about 6 people, average salary around $90k.
Ok so $540k salaries + benefits, so ~$700k. Then you have transaction costs:
- Annual salary increases
- Any cost associated with people leaving (severance, hiring, recruiters, HR, HR systems)
- Systems that run in the data center (logging, monitoring, etc.)
- Procurement costs with changing costs in hardware (silicon shortages, etc.)
- Security compliance overhead and associated risks
- Finance resources required to capitalize and manage asset allocation
- etc. etc.
Versus
- Click a button and voila it works.
- Hire way less engineers to manage the system administrative portion
> If the answer is automatically “AWS <whatever>“, you’re making a decision to burn dollars for convenience.
100% AGREE. The answer is always "it depends", but just like people are saying "just put in the cloud", the opposite of "well it worked for us using a data center" isn't that simple.
- Spooky23 5y agoSay all of those costs are $2,000,000, and you have 25,000 billable endpoints in the datacenter… you’re looking at less than $0.01/hour for that overhead on a unit basis. Obviously, there’s a huge capital investment component too that has to be incorporated. Those costs may be really high if you’re in a growth phase as you need to overbuy capacity. Just to be clear, I’m not arguing that on-prem is magically cheap. :) But it has its place too!
- mbesto 5y agoAgreed on all accounts.