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It isn't a coincidence that they take their margins on bandwidth instead of compute. Makes you do the computations locally at AWS instead of sending it to some
by Jensson 4y ago
It isn't a coincidence that they take their margins on bandwidth instead of compute. Makes you do the computations locally at AWS instead of sending it to some other datacenter.
The better version that will never happen is that AWS makes their margin evenly on all purchases. But that wont happen since by pricing bandwidth so highly encourages people to do everything at AWS instead of sending data between providers.
- bushbaba 4y agoWhy do you think they make huge profit on bandwidth. Larger customers all have PPA agreements with very large discounts. Smaller customers get the benefit of a stellar network with elasticity in the Tibps plus range for a small $/GiB fee.
- Jensson 4y ago> Smaller customers get the benefit of a stellar network with elasticity in the Tibps plus range for a small $/GiB fee. Are you AWS sales? This seems unrelated to the discussion to me.
- eropple 4y ago> Why do you think they make huge profit on bandwidth. Because I have a rough idea of what bandwidth costs me at a data center, I can make some conservative extrapolations for their economies of scale, and I can read the AWS price page. (I have also negotiated discounted bandwidth fees for AWS, and while they can be substantial, AWS is not going hungry.)
- watermelon0 4y agoCompared to pricing of non-cloud providers, I'm sure AWS also takes their margin on compute. It might be a magnitude less than for bandwidth, but it's still there.
- re-thc 4y agoEven compared to cloud providers AWS charges more for compute.
- coredog64 4y agoSecurity groups and NACLs are free. The way I see it, the margins on things that are easy to measure pay for things that would drive bad behavior if the margin was applied evenly.