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> or what is the price of a cutting edge fab these days? Intel says they're going for two factories of 20 bln indeed [1], Samsung for 17 bln in Taylor, Texas [

> or what is the price of a cutting edge fab these days? Intel says they're going for two factories of 20 bln indeed [1], Samsung for 17 bln in Taylor, Texas [2], and Micron claims to go for 100 bln (over time) in Clay, New York [3]. > Why invest 20 billion dollars [...] to create supply without demand? Why do we have to pay about 5 dollars per month for a VPS with only 1 vCPU, 1 GB RAM, and 10 GB storage? I'm certainly hoping these specs to all increase 10-fold over the next 10 years for the same price. [1]: https://www.intel.com/content/www/us/en/newsroom/news/intel-announces-next-us-site-landmark-investment-ohio.html https://www.intel.com/content/www/us/en/newsroom/news/intel-... [2]: https://news.samsung.com/global/samsung-electronics-announces-new-advanced-semiconductor-fab-site-in-taylor-texas https://news.samsung.com/global/samsung-electronics-announce... [3]: https://investors.micron.com/news-releases/news-release-details/micron-announces-historic-investment-100-billion-build-megafab https://investors.micron.com/news-releases/news-release-deta...

api 4y ago
Re your last point: cloud specs are already far beyond that. Cloud companies just pocket the difference. Cloud lets hosting companies benefit from Moore’s law, not you. Look at the machine you can build for one months’ typical AWS cost for a medium size SaaS company. Cloud also charges insanely high rates for bandwidth.
- huijzer 4y ago
  I doubt that. I was not talking about AWS. The price I mentioned is from Hetzner (by heart though, so I might be a bit off) which is pretty cheap. I have also tested multiple budget VPS providers and they all don’t dare to go below aforementioned price even though there is a lot of competition in the VPS market. Sometimes the more budget providers provide more vCPUs but in my tests those usually turn out to be extremely slow.
  - marcosdumay 4y ago
    Well, it's 2GB of RAM, and 23GB of disk. It's quite low, but the real costs are on datacenter space and connectivity anyway, I have no idea what their cost structure looks like. I would expect any real user to switch into renting servers as soon as small VPSs aren't enough. (But yes, the fact that there is a market of large VPSs tells people don't to that. I don't think I will ever understand this, as I don't understand most people usage of AWS.)
    - maxfurman 4y ago
      Most buyers are simply not savvy enough to pick the most effective hosting. I worked for a small e-commerce operation years ago, they had essentially no technical expertise in-house, but they knew their products and their market. Odds are very low that their VPS arrangement was optimal but how would they know? As long as the site stayed up and the orders came in.

api 4y ago

Re your last point: cloud specs are already far beyond that. Cloud companies just pocket the difference. Cloud lets hosting companies benefit from Moore’s law, not you. Look at the machine you can build for one months’ typical AWS cost for a medium size SaaS company. Cloud also charges insanely high rates for bandwidth.

huijzer 4y ago
I doubt that. I was not talking about AWS. The price I mentioned is from Hetzner (by heart though, so I might be a bit off) which is pretty cheap. I have also tested multiple budget VPS providers and they all don’t dare to go below aforementioned price even though there is a lot of competition in the VPS market. Sometimes the more budget providers provide more vCPUs but in my tests those usually turn out to be extremely slow.
- marcosdumay 4y ago
  Well, it's 2GB of RAM, and 23GB of disk. It's quite low, but the real costs are on datacenter space and connectivity anyway, I have no idea what their cost structure looks like. I would expect any real user to switch into renting servers as soon as small VPSs aren't enough. (But yes, the fact that there is a market of large VPSs tells people don't to that. I don't think I will ever understand this, as I don't understand most people usage of AWS.)
  - maxfurman 4y ago
    Most buyers are simply not savvy enough to pick the most effective hosting. I worked for a small e-commerce operation years ago, they had essentially no technical expertise in-house, but they knew their products and their market. Odds are very low that their VPS arrangement was optimal but how would they know? As long as the site stayed up and the orders came in.