3 ms·

Inflation. At the rate it went up the last couple of years, a 20% price increase to put them back on the right side of profits is more than probable.

Moru 2y ago
Also a storage inflation on the users side. People have more data on bigger drives that wants a backup.
- Dylan16807 2y ago
  This is B2, the service that charges per byte. More data makes it easier for them to profit.
Dylan16807 2y ago
Maybe I wasn't clear, but the hardware costs and the operation costs should all have dropped between 2x and 5x as a baseline before price increases. Inflation is not even close to that level. And those hardware costs already take into account inflation up through the end of 2022.
- justsomehnguy 2y ago
  > e hardware costs and the operation costs should all have dropped between 2x and 5x That would work if they fully recouped the costs of obtaining and running the drives, including racks, PSUs, cases, drive and PSU replacements, control boards, datacenter/whatever costs, electricity, HVAC etc. and generated a solid profit not only to buy all the new hardware but a new yacht for the owners too. But usually that is not how it works, because the nobody sane buys the hardware with the cash. And even if they have a new fancy 240TB/rack units, that doesn't mean they just migrated outright and threw the old ones ASAP. So while there is a 5x lower costs per U for the new rack unit, it doesn't translate to 5x lower cost of storage for the sell.
  - Dylan16807 2y ago
    I would sure hope the original units were recouped after 8 years. You can look at their stats and see that the very vast majority of their data is on 12-16TB drives, and most of the rest is on 8TB drives. Even with those not being the very newest and cheapest models, their average server today is a lot denser and cheaper than their brand new servers 8 years ago.
  - philistine 2y ago
    TL;DR Business is hard.

Moru 2y ago

Also a storage inflation on the users side. People have more data on bigger drives that wants a backup.

Dylan16807 2y ago
This is B2, the service that charges per byte. More data makes it easier for them to profit.

Dylan16807 2y ago

Maybe I wasn't clear, but the hardware costs and the operation costs should all have dropped between 2x and 5x as a baseline before price increases. Inflation is not even close to that level. And those hardware costs already take into account inflation up through the end of 2022.

justsomehnguy 2y ago
> e hardware costs and the operation costs should all have dropped between 2x and 5x That would work if they fully recouped the costs of obtaining and running the drives, including racks, PSUs, cases, drive and PSU replacements, control boards, datacenter/whatever costs, electricity, HVAC etc. and generated a solid profit not only to buy all the new hardware but a new yacht for the owners too. But usually that is not how it works, because the nobody sane buys the hardware with the cash. And even if they have a new fancy 240TB/rack units, that doesn't mean they just migrated outright and threw the old ones ASAP. So while there is a 5x lower costs per U for the new rack unit, it doesn't translate to 5x lower cost of storage for the sell.
- Dylan16807 2y ago
  I would sure hope the original units were recouped after 8 years. You can look at their stats and see that the very vast majority of their data is on 12-16TB drives, and most of the rest is on 8TB drives. Even with those not being the very newest and cheapest models, their average server today is a lot denser and cheaper than their brand new servers 8 years ago.
- philistine 2y ago
  TL;DR Business is hard.