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How do you know Twitch is "buying" AWS servers so cheaply though? Anyways, infrastructure costs is not as important as market share in the long run, bandwidth

How do you know Twitch is "buying" AWS servers so cheaply though? Anyways, infrastructure costs is not as important as market share in the long run, bandwidth and transcoding costs will go down with time. If you build a platform where nobody has grounds to compete with you like Twitter, (Threads tried), you've got something really valuable - maybe not 44 billion worth but still.

scarface_74 3y ago
Every internal departments budget is charged for their AWS services The citation below isn’t entirely true, internal departments aren’t charged “retail” prices. But they are charged and if you have multiple accounts opened testing different releases of an open source “AWS Solution” in multiple regions that uses the then $5K a month Kendra service along with largish ElasticSearch, you will show up on the naughty list (ask me how I know) I’m no longer an employee if AWS https://www.lastweekinaws.com/blog/the-aws-service-i-hate-the-most/ https://www.lastweekinaws.com/blog/the-aws-service-i-hate-th... > When internal game development teams use Isengard accounts, they must pay (via internal accounting) the same rates for AWS compute cycles that outside retail customers pay, according to people close to the teams
- whatyesaid 3y ago
  Yeah but Twitch is so big it would never pay retail rates to any cloud service, even given the rates for the bulkiest users. And because it's Amazon owned it's not a question of going to AWS but how much they'd negotiate. So on paper Twitch can lose them money but Amazon makes money through AWS. YouTube is break even and imagine how much content is uploaded and stored there per second, forever. Twitch VODs are deleted after 2 months. Most streamers don't even get any viewers. Those that get viewers get people paying real money on top of ad spam. The numbers don't really add up like how Amazon often pays $0 in tax.

scarface_74 3y ago

Every internal departments budget is charged for their AWS services The citation below isn’t entirely true, internal departments aren’t charged “retail” prices. But they are charged and if you have multiple accounts opened testing different releases of an open source “AWS Solution” in multiple regions that uses the then $5K a month Kendra service along with largish ElasticSearch, you will show up on the naughty list (ask me how I know) I’m no longer an employee if AWS https://www.lastweekinaws.com/blog/the-aws-service-i-hate-the-most/ https://www.lastweekinaws.com/blog/the-aws-service-i-hate-th... > When internal game development teams use Isengard accounts, they must pay (via internal accounting) the same rates for AWS compute cycles that outside retail customers pay, according to people close to the teams

whatyesaid 3y ago
Yeah but Twitch is so big it would never pay retail rates to any cloud service, even given the rates for the bulkiest users. And because it's Amazon owned it's not a question of going to AWS but how much they'd negotiate. So on paper Twitch can lose them money but Amazon makes money through AWS. YouTube is break even and imagine how much content is uploaded and stored there per second, forever. Twitch VODs are deleted after 2 months. Most streamers don't even get any viewers. Those that get viewers get people paying real money on top of ad spam. The numbers don't really add up like how Amazon often pays $0 in tax.