4 ms·

Help me understand - you build on top of AWS, which charges $0.09/GB for egress to the Internet, yet you're charging $0.05/GB for egress to the Internet? Sounds

Help me understand - you build on top of AWS, which charges $0.09/GB for egress to the Internet, yet you're charging $0.05/GB for egress to the Internet? Sounds like you're subsidizing egress from AWS? Or do you have access to non-public egress pricing?

nfm 2y ago
List pricing is $0.05 per GB after 150TB and at high volume it’s cheaper than that
shikhar 2y ago
(Founder) We are not charging in preview. At the scale where it matters, we will work it out. Definitely some assumptions in here.
- 8n4vidtmkvmk 2y ago
  Just FYI, that doesn't give me confidence in the longevity of your service.
  - shikhar 2y ago
    (Founder) I understand the concern. However, cloud discounts at scale can be very large, and we are going to share as much of it as we reasonably can.
    - everfrustrated 2y ago
      Discounts require multi year commitment for minimum (and increasing) spend. Generally you need to be either profitable or a well funded startup to demonstrate why a vendor would trust your ability to pay (it's literally a debt on your books). How do they know you're good for it? Plus multi cloud means less scale and less marketing incentive (can't talk about you as a x cloud customer). I wish you the best, but would encourage you to not set your prices below your costs.
      - shikhar 2y ago
        (Founder) Thank you for the advice. I hope we can offer better when the deals come into play, but for now setting our planned internet egress price to $0.08/GiB.
  - srik 2y ago
    Cloud services offer giant discounts sometimes and the receiving party aren't allowed to talk about it concretely so that's probably what's happening here.
- JoshTriplett 2y ago
  Do you plan to charge differently for bandwidth depending on whether the customer is in AWS or not? Would be nice if you pass on the cost savings.
  - shikhar 2y ago
    (Founder) Yes, we will charge less for private connectivity. Pricing is transparent https://s2.dev/pricing https://s2.dev/pricing - free during preview.
    - CodesInChaos 2y ago
      Doesn't AWS charge $0.01 intra region and $0.02 between regions, even without setting up private links? Can't you pass part of those savings (compared to the $0.05-$0.09 of egress) on? Or is it too difficult to detect if the remote IP qualifies?
      - shikhar 2y ago
        (Founder) Unfortunately, if you access over a public IP, it is internet egress. Even if the client is in the same AWS cloud region. PrivateLink is the only option.
        chicagobuss 2y ago
        Peering is an option as well but it's a whole different ballgame of complexities to set up vs. private link
- bigstrat2003 2y ago
  For what it's worth, there's zero chance I would do business with a company whose business plan is "we'll work it out". It gives one every reason to believe that in a couple years time you guys will either be out of business (because you didn't figure out the numbers to make a profit) or will pull the rug from under customers in the form of surprise price hikes. Obviously you have to do what you think is right, but I think that this approach is going to scare off a lot of customers for you.
  - shikhar 2y ago
    (Founder) We are not charging during preview. If anything, I wanted to be transparent about our planned pricing. Our mission is to make streams a cloud storage primitive, and I worked backwards from there in terms of our costs and expected costs looking ahead once we can scale a bit - based on concrete data points about what kind of discounts can be unlocked. I realized it was premature based on the comments here, so the price for internet egress has been updated. Thank you for your feedback.
    - poopiokaka 2y ago
      [flagged]
    - deleted 2y ago
      [deleted]
deleted 2y ago
[deleted]
MicolashKyoka 2y ago
strat is likely just get users, then offboard aws if the product works.
- shikhar 2y ago
  (Founder) No, we want to be in the same cloud regions as customers.
kondro 2y ago
They’re probably betting on most users being in AWS and only having to pay 1¢-2¢ transfer.
- ckdarby 2y ago
  They're also banking on scale to PPA with a specific amendment for egress.
amazingman 2y ago
Nobody with sufficient scale will be paying retail for data transfer.
CodesInChaos 2y ago
Looks like they changed it to $0.08/GB. Which loses them at most $300/month at 50TB, and makes money after that.

nfm 2y ago

List pricing is $0.05 per GB after 150TB and at high volume it’s cheaper than that

shikhar 2y ago

(Founder) We are not charging in preview. At the scale where it matters, we will work it out. Definitely some assumptions in here.

8n4vidtmkvmk 2y ago
Just FYI, that doesn't give me confidence in the longevity of your service.
- shikhar 2y ago
  (Founder) I understand the concern. However, cloud discounts at scale can be very large, and we are going to share as much of it as we reasonably can.
  - everfrustrated 2y ago
    Discounts require multi year commitment for minimum (and increasing) spend. Generally you need to be either profitable or a well funded startup to demonstrate why a vendor would trust your ability to pay (it's literally a debt on your books). How do they know you're good for it? Plus multi cloud means less scale and less marketing incentive (can't talk about you as a x cloud customer). I wish you the best, but would encourage you to not set your prices below your costs.
    - shikhar 2y ago
      (Founder) Thank you for the advice. I hope we can offer better when the deals come into play, but for now setting our planned internet egress price to $0.08/GiB.
- srik 2y ago
  Cloud services offer giant discounts sometimes and the receiving party aren't allowed to talk about it concretely so that's probably what's happening here.
JoshTriplett 2y ago
Do you plan to charge differently for bandwidth depending on whether the customer is in AWS or not? Would be nice if you pass on the cost savings.
- shikhar 2y ago
  (Founder) Yes, we will charge less for private connectivity. Pricing is transparent https://s2.dev/pricing https://s2.dev/pricing - free during preview.
  - CodesInChaos 2y ago
    Doesn't AWS charge $0.01 intra region and $0.02 between regions, even without setting up private links? Can't you pass part of those savings (compared to the $0.05-$0.09 of egress) on? Or is it too difficult to detect if the remote IP qualifies?
    - shikhar 2y ago
      (Founder) Unfortunately, if you access over a public IP, it is internet egress. Even if the client is in the same AWS cloud region. PrivateLink is the only option.
      - chicagobuss 2y ago
        Peering is an option as well but it's a whole different ballgame of complexities to set up vs. private link
bigstrat2003 2y ago
For what it's worth, there's zero chance I would do business with a company whose business plan is "we'll work it out". It gives one every reason to believe that in a couple years time you guys will either be out of business (because you didn't figure out the numbers to make a profit) or will pull the rug from under customers in the form of surprise price hikes. Obviously you have to do what you think is right, but I think that this approach is going to scare off a lot of customers for you.
- shikhar 2y ago
  (Founder) We are not charging during preview. If anything, I wanted to be transparent about our planned pricing. Our mission is to make streams a cloud storage primitive, and I worked backwards from there in terms of our costs and expected costs looking ahead once we can scale a bit - based on concrete data points about what kind of discounts can be unlocked. I realized it was premature based on the comments here, so the price for internet egress has been updated. Thank you for your feedback.
  - poopiokaka 2y ago
    [flagged]
  - deleted 2y ago
    [deleted]

deleted 2y ago

[deleted]

MicolashKyoka 2y ago

strat is likely just get users, then offboard aws if the product works.

shikhar 2y ago
(Founder) No, we want to be in the same cloud regions as customers.

kondro 2y ago

They’re probably betting on most users being in AWS and only having to pay 1¢-2¢ transfer.

ckdarby 2y ago
They're also banking on scale to PPA with a specific amendment for egress.

amazingman 2y ago

Nobody with sufficient scale will be paying retail for data transfer.

CodesInChaos 2y ago

Looks like they changed it to $0.08/GB. Which loses them at most $300/month at 50TB, and makes money after that.