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Anecdotally, I am beginning to hear more and more about organisations moving away from high level cloud infrastructure (such as lambda and cloud gateway) and go

by fergie 3y ago

Anecdotally, I am beginning to hear more and more about organisations moving away from high level cloud infrastructure (such as lambda and cloud gateway) and going back to plain old virtual servers (like EC2), or even on-prem. Often the cost of supposedly "cheap" cloud environments is WAY more than you might expect and all booked as operational rather than capital expenditure (the latter being often preferable to shareholders).

devjab 3y ago
I'm not sure why that would be too surprising to you. In the enterprise organization I've worked with over the past few decades IT strategy is always long term and always cost based. 10-15 years ago organizations moved from the basement to placing their owned hardware in rented racks in data centers that were run by 3'rd party organization because it was cheaper. Then Azure came along and made it sort of a "no-brainer" to move into Azure because you already had a lot of Microsoft products and Azure was cheap. Now with so many Azure price hikes and those 3'rd party data centers improving their business models, the pendulum is swinging away from Azure. That doesn't mean that the move into Azure wasn't the right one at the time, or that it was more expensive than not going into Azure. It's simply that the market evolves.
whstl 3y ago
My previous company went from very expensive cloud CI/CD servers to on-prem off-the-shelf servers. The cost and the incredible performance gains we got by moving to a bunch of local computers was enough to make the whole thing pay for itself in about two months. Yep, physical computers costed less than two months of cloud. Plus the gains in productivity from having to wait minutes instead of hours. Maintenance was never a problem, and we didn't need to hire new people to take extra care of the servers. My current company is thinking of doing the same for AI servers. It's just too expensive in AWS.
_rwo 3y ago
> (...) and going back to plain old virtual servers Some of us never left ;)
PestoDiRucola 3y ago
I wonder if this will be another effect of higher-than-0 interest rates. With tech companies choosing to leave cloud service providers in order to reduce their costs.

by fergie 3y ago

devjab 3y ago

I'm not sure why that would be too surprising to you. In the enterprise organization I've worked with over the past few decades IT strategy is always long term and always cost based. 10-15 years ago organizations moved from the basement to placing their owned hardware in rented racks in data centers that were run by 3'rd party organization because it was cheaper. Then Azure came along and made it sort of a "no-brainer" to move into Azure because you already had a lot of Microsoft products and Azure was cheap. Now with so many Azure price hikes and those 3'rd party data centers improving their business models, the pendulum is swinging away from Azure. That doesn't mean that the move into Azure wasn't the right one at the time, or that it was more expensive than not going into Azure. It's simply that the market evolves.

whstl 3y ago

My previous company went from very expensive cloud CI/CD servers to on-prem off-the-shelf servers. The cost and the incredible performance gains we got by moving to a bunch of local computers was enough to make the whole thing pay for itself in about two months. Yep, physical computers costed less than two months of cloud. Plus the gains in productivity from having to wait minutes instead of hours. Maintenance was never a problem, and we didn't need to hire new people to take extra care of the servers. My current company is thinking of doing the same for AI servers. It's just too expensive in AWS.

_rwo 3y ago

> (...) and going back to plain old virtual servers Some of us never left ;)

PestoDiRucola 3y ago

I wonder if this will be another effect of higher-than-0 interest rates. With tech companies choosing to leave cloud service providers in order to reduce their costs.