It’s never been cheaper. It’s so much easier to scale. It’s never been cheaper. Well, maybe at a very low usage rate. But, at scale, it’s never been cheaper.
Buying server hardware is a lot more difficult and with more lead time than just buying a computer. Plus you then have to build your server infrastructure out in a data center. It takes a lot of time, and specific logistical skills. AWS is far easier to scale your services then doing it yourself, especially if you have extremely high peaks that you have to serve.
If AWS was cheaper then hosting, they wouldn’t make money.
The upfront cost of entering the market getting higher and higher as an industry matures is one of the major reasons why we have incomplete competition and monopolies. If as a scrappy underdog you “just” need to build a network of serverfarms and hire the people to design, manage and run all that so you can just even start to dream about competing with the goliaths that basically have all that built and more then in practice you are not entering that market. That upfront cost is the issue, not the cost of running it in the long run.
It’s not even some malicious plot, it’s just the cost of doing business in a maturing market gets higher as technology advances. All these cloud providers know this upfront cost issue. White it’s easier to start with AWS they will try to keep everybody locked in so they can milk every cent out of their techofeudal peasants living in their fiefdom if they ever make it. If anybody wants to get out they need to cough up the cash to build all that infrastructure while still paying for Amazon to keep them going.
It’s never been cheaper. It’s so much easier to scale. It’s never been cheaper. Well, maybe at a very low usage rate. But, at scale, it’s never been cheaper.
Buying server hardware is a lot more difficult and with more lead time than just buying a computer. Plus you then have to build your server infrastructure out in a data center. It takes a lot of time, and specific logistical skills. AWS is far easier to scale your services then doing it yourself, especially if you have extremely high peaks that you have to serve.
If AWS was cheaper then hosting, they wouldn’t make money.
The upfront cost of entering the market getting higher and higher as an industry matures is one of the major reasons why we have incomplete competition and monopolies. If as a scrappy underdog you “just” need to build a network of serverfarms and hire the people to design, manage and run all that so you can just even start to dream about competing with the goliaths that basically have all that built and more then in practice you are not entering that market. That upfront cost is the issue, not the cost of running it in the long run.
It’s not even some malicious plot, it’s just the cost of doing business in a maturing market gets higher as technology advances. All these cloud providers know this upfront cost issue. White it’s easier to start with AWS they will try to keep everybody locked in so they can milk every cent out of their techofeudal peasants living in their fiefdom if they ever make it. If anybody wants to get out they need to cough up the cash to build all that infrastructure while still paying for Amazon to keep them going.