back to article Even Netflix struggles to identify and understand the cost of its AWS estate

Keeping track of the amount of cloudy resources an org uses, and the cost of doing so, is notoriously tricky – so tricky, indeed, that even Netflix isn't on top of it. We know this because on Wednesday US time the vid-streamer blogged about its cloud efficiency measures. The post – penned by senior analytics engineer " …

  1. harrys

    bend over netflix

    so basically, everything they produce and everything they engineer is wholly dependent on AWS keeping the lights on and playing nicely with them

    and they have no alternative provider strategy in place (?) and are actually engineering even deeper into the aws stack

    AWS subsiduary in all but name

    1. Rainer

      Re: bend over netflix

      Not everything. The content delivery boxes - a.k.a. Netflix Open Connect Appliances - are still bare metal FreeBSD boxes that they build, own, run and maintain.

    2. Snake Silver badge
      Facepalm

      Re: bend over netflix

      Even worse: it's the reason for Netflix's constant price increases (let's not mention constant selection quality depreciation). Netflix's enshitification now has a reason, they're giving most of their infrastructure to AWS to "manage" and Amazon, being Amazon AWS, is *more* than happy to increase your bill due to a single error in configuration without saying a word to you.

      So, Netflix's major "infrastructure" for their own operations is mostly virtual. Nice job. Pass the buck, pass the bill [on to the end consumers], it's someone else's problem to keep us going, thankyouverymuch.

      1. JLV

        Re: bend over netflix

        Nah, the entshitification and costs is due to Netflix changing from an aggregator of other people's contents to trying too hard to be its own studio. A model the other streamers have followed.

        Think about it: 20 yrs ago would you have expected all of ABC/CBS/NBC shows, or those of any Euro chains, to be all good? Of course not, a good deal of them are going to be duds.

        Netflix started out re-cycling shows and movies, which did not cost it all that much. But, key point, they also got the best stuff from a lot of sources, since they were an additional revenue stream over DVDs for the studios.

        Over time though the studios learned that a) Netflix was making a lot of money and b) Netflix was killing their DVD biz. Prices went up, studios each wanted to become a streaming service.

        So now you have a lot of shit shows that need $$$ to film. Studios holding better TV series or old film titles hoard their wares like dragons of old. The availability of classic or indy movies, compared to a decently-stocked 2000's DVD rental store has collapsed. Streamers are in a bidding war to see who can fund the most expensive re-warmed blockbuster crap like House of the Dragon or Wheel of Time, out of your wallet. Meanwhile unlike the good old days where your cable company gouged you once, you now need to subscribe to half a dozen streamers, if you want to watch all the "important shows" as they come out.

        I mean, sure, Amazon not running Netflix's backend out of charity isn't helping. But that's really not the core issue.

        1. CowHorseFrog Silver badge

          Re: bend over netflix

          The enshitification of modern entertainment, is everybody believes in celebrity names rather than actually good stories. They are all lazy, and think they can buy greatness because unfrotunately a lot of entertainment is about celebrity.

          20 years ago, many shows were quality, nowdays basically e erything is garbage in comparison. Perfect example are the indy movies from the 80s compared to the modern ones, theres simply no comparison which is great and which is garbage built only one names instead of quality.

          1. Snake Silver badge
            Thumb Up

            Re: they are all lazy

            Yes, I fully agree and why I don't bother watching / reading fiction any more (well, I made only a few exceptions: James Bond (wish I didn't, the Daniel Craig Bonds just *aren't fun*), Marvel but only up to Endgame, Inception, and a few animateds). The [modern] writers seem to be all lazy hacks who will, almost instantly, fall into a trope to solve a plot issue or character conflict rather than actually write.

            1. JLV

              Re: they are all lazy

              I don't think modern shows and movies are necessarily much worse. TV has gotten a lot "deeper" since good ol' Starksky and Hutch and most of the Bonds were never that great to start with - that's due to the very format and concept for the franchise - although Connery did make it work at times. Likewise, it is hard to see The Witch, White Lotus or Vast of Night as somehow inferior to an idyllic past.

              No, the problem is a race for high production value content to fill the libraries of too many competing streamers, with a lot of shows getting the green light that really did not need to be made. To make the numbers work, the answer is obvious: sequels, sequels, sequels. Derivative, derivative, derivative (from similar content that worked). Ditto theatres: they are not doing well, so need to make big-screen content. Then you can another new development: best way to make an epic seeming movie is: CGI, CGI and more CGI. Even cheap CGI can make a positive difference - Equilibrium - but even great CGI won't save a crap movie though it might motivate enough eyeballs for ROI.

              To start with, how many superhero films do we need every year? Star Wars? Star Trek? How much breathless coverage do we need to see about a great new fantasy adaptation? How many CSIS redos? I tried to watch Squid Game (Battle Royale) or Money Heist (pompous crime genius with hot supporting actor hookups to keep the suspense). How many nitwit near-future spy agency stories? Add to that a huge selection of online websites who seem to get paid to promote the pap (looking at you Ars Technica, Vulture, etc...)

              There's plenty of good stuff coming out, it's just lost in the noise and you're stuck paying for the shit in your subscriptions.

    3. bigtreeman

      Re: bend over netflix

      Beholden to Amazon AWS at the same time competing with Amazon Prime.

      I think I know how this ends.

  2. Steve Davies 3 Silver badge
    Mushroom

    Then... there are the 'exit' costs

    Which knowing AMZN, will be the size of an empire state building sized pile of benjamins.

    Dealing with any part of the Bezos empire is like dealing with the devil jnr.

    Devil Snr is reserved for Musk who now wants to buy the UK (via Farage)

    Both can suck on this [see icon]

    1. pdh

      Re: Then... there are the 'exit' costs

      Exit costs can be high even if you're totally on-prem -- it's not just a cloud thing. Ask VMware users about that...

    2. Anonymous Coward
      Anonymous Coward

      Re: Then... there are the 'exit' costs

      I wonder if this means that Netflix would need to don an eyepatch to reduce their exit fees?

      1. doublelayer Silver badge

        Re: Then... there are the 'exit' costs

        I don't think they're relying on AWS for storage of important things. All their video assets have copies on their self-built CDN nodes, and almost certainly on massive storage systems that are at a scale where renting them doesn't help. The pain in trying to leave is taking all the services that are built on AWS components and trying to run them somewhere else. That doesn't happen if they only rented IaaS with everything custom above that, but from their description, they use other services that you can't easily just move. For data egress, the stuff they would have to pay to copy is likely a bunch of logs of every customer's every action, and those are probably quite large files, but not compared to all their videos.

        1. Anonymous Coward
          Anonymous Coward

          Re: Then... there are the 'exit' costs

          a splunk sales event where they were bragging about Netflix ingesting gazillion customer behavior events and analysing them, so those are probably not in AWS eirher

        2. Oneman2Many Bronze badge

          Re: Then... there are the 'exit' costs

          Customer data is probably more important to them then content which will have duplicated across hundreds of distribution points. Its those services which will be running on AWS along with billing, marketing and public facing website and most likely their internal systems like HR, software development, etc and almost certainly most of that will not be IaaS.

          They potentially have a lot of issues coming as Trump doesn't believe in Net Neutrality opening the door for ISPs to fleece Netflix for carrying their traffic.

  3. Headley_Grange Silver badge

    Get a Dog, Learn to Bark

    It sounds to my non-professional self that they might not be far away from employing as many people to manage AWS as they would managing an in-house service.

    1. breakfast

      Re: Get a Dog, Learn to Bark

      Ah yes, but if it's on AWS and it goes down it's somebody else's fault. You can't put a price on that, apparently literally.

      1. heyrick Silver badge

        Re: Get a Dog, Learn to Bark

        That's true, but the flip side is that if it goes down you're at the whim of that third party in getting normal service resumed, especially given that this third party might have a different agenda to you or have buried "tough shit" in the small print.

        1. Missing Semicolon Silver badge

          Re: Get a Dog, Learn to Bark

          Yes, but it no longer matters. "Cloud gone down" is the new "dog ate my homework", so everyone just sagely nods, and keeps hitting refresh until it comes up.

          Even banks just go "meh" when their cloud goes cloudy.

        2. yoganmahew

          Re: Get a Dog, Learn to Bark

          Nobody runs their own datacentres. I work for a large corporation. We had 19 data centres, all provided by and managed by different service companies at different depths of hands-on. Barely a month went by without an issue at one or other of them. Since migrating to GCP (multiple regions around the world) we've had almost nothing that was GCP related (our punishments have been self-inflicted). There's lots of pain in the cloud, but reliability isn't generally one of them, at least not if you architecture properly. Now, I've no doubt some of our lift-and-shift is suboptimal and there would be a scramble to recover it, but we've had those scrambles multiple times with our 'own' DCs.

          1. Robigus

            Re: Get a Dog, Learn to Bark

            I've just finished some work for a major bank. They have their own data centres with their own cloud, so they can Kooby-Nooby up instances of whatever they want.

            Trusting Johnny Cloud to look after these things is deemed bad form.

            1. yoganmahew

              Re: Get a Dog, Learn to Bark

              Who runs the DC? Is it your people all the way down?

              The banks I know outsource the infra to a service company that owns the building, power, racking, network connections (usually sub-let to Telcos).

              And is there no-one else in your DC?

              Perhaps the US is different, but when we had our 'own' DCs, they weren't ours. They were somewhere between IAAS and PAAS; there was always someone else doing the basic running of the building and utilities.

          2. Oneman2Many Bronze badge

            Re: Get a Dog, Learn to Bark

            I don't work for a financial company and have 6 data centres round the global mostly for HPC and storage.

          3. seven of five Silver badge

            Re: Get a Dog, Learn to Bark

            So, your company sucked at running a datacentre, but is able to properly design and operate a resilient cloud? sure thing...

          4. eamonn_gaffey

            Re: Get a Dog, Learn to Bark

            Plenty run their own DC's. In fact, I believe this esteemed organ recently published a piece on AWS users moving services back to such DC's. The corporate execs drank the koolaid, got the hangover and now realise the extent of the deception imposed by faddish Public Cloud groupthink ...but eventually money will talk.

          5. Anonymous Coward
            Anonymous Coward

            Re: Get a Dog, Learn to Bark

            Anon for reasons.

            We've had relatively few, but occasional hardware issues and one major screwup with regard to authentication that was cloud partner inflicted.

            Still far easier to deal with than customers screwing up their instances in "interesting" ways.

    2. Dave559

      Re: Get a Dog, Learn to Bark

      Amazon has often been described as having become a computing infrastructure business with a gift store on the side.

      Maybe Netflix should similarly consider becoming their own computing infrastructure business with a content (ugh) licensing / production business on the side?

      They could then start touting spare capacity to current AWS customers, and see if they can offer a better deal… «gets popcorn»

      1. Anonymous Coward
        Anonymous Coward

        Re: Get a Dog, Learn to Bark

        I used to work at a large Japanese corporation (you know the one, last seen at a UK government inquiry near you) that sneered at the cloud computing efforts of "an online bookshop" and laughed as they predicted the future when the IT services companies would crush their efforts. I guess that Azure is doing pretty well. Anyone ever hear of K5?

  4. Nick.fox

    Understanding spend at scale in Aws is incredibly difficult. By design no doubt.

    1. Doctor Syntax Silver badge

      Understanding the scale is no problem - just look at the bill. Understanding how you got there - priceless.

  5. abend0c4 Silver badge

    I would have imagined...

    ... that most Netfilx costs arose at the edge - pushing large video files from CDNs to telly boxes - and the bit in the middle processing payments and making it impossible to find anything worth watching would be comparatively much less costly.

    But, I suppose, a lot could be analytics. Everyone is so convinced that collecting ever-more data about your customers is the key to economic success that no-one is ever going to question the cost of collecting and processing it, so maybe it's better simply not to know.

    1. heyrick Silver badge

      Re: I would have imagined...

      Ask Netflix for a copy of your data. They track and record every interaction. Hit pause for a pee? Recorded. Hit back up to watch a funny thing again? Recorded. Stopped watching and went and did something else? Recorded. All of it.

      I'm sure this might provide some sort of valuable "insights" about video consumption but, for the love of god, just stick me in a box labelled ADHD and give up.

      1. FirstTangoInParis Bronze badge

        Re: I would have imagined...

        Well I guess if you licensed boat loads of film and TV you’d want to know what your customers are engaging with. They spent time and money getting some film or series that someone thought was good, only nobody gets past the first ten minutes. Time to unlicense that.

        1. heyrick Silver badge

          Re: I would have imagined...

          Hmm, and there I was labouring under the misapprehension that "the algorithm" was designed to promote crap that was cheap to make and cancel any series that was worth a damn... silly me.

      2. Jellied Eel Silver badge

        Re: I would have imagined...

        I'm sure this might provide some sort of valuable "insights" about video consumption but, for the love of god, just stick me in a box labelled ADHD and give up.

        Netflix does videos? Not sure about valuable insights given the latest exciting new videos are a 'shelf' titled "Popular mobile games for you".

        This.. puzzles me as I've never watched Netflix on a mobile, mostly via PC browser and PS5. And in typical scream.. I mean streaming service, doesn't give me the ability to hide 'shelves' or re-organise content in any way that I might want. So there are 'shelves' for horror, scarey and a bazillion more 'curating' content into overlapping categories, often featuring the same movie.. That I may already have watched. Oh, and of course there's a 'shelf' for watch again.

        Meanwhile, potentially useful stuff like a plot synopsis got squeezed down to a 1-liner in most cases.

        I suspect this is a cunning plan to make it appear that Netflix (and Prime) have more content than they actually do, especially as relevant 'shelves' like new stuff usually gets buried. I think both are trying to meet the definition of doom-scrolling, along with the old adage of 'down, not across. But if the way they manage UIs and categorise content is anything to go by, it's no great suprise they struggle to understand their own data or AWS costs.

        1. heyrick Silver badge

          Re: I would have imagined...

          "I've never watched Netflix on a mobile"

          I do and it's pretty much the same as you describe. The "shelves" (not sure that's a good word but I can't think of a better one) are often full of fairly recent things or popular things and some of the more niche things only turn up if searched for or by accident.

          "a cunning plan to make it appear that Netflix (and Prime) have more content than they actually do"

          Perhaps, but given that it is an always-changing thing it's not entirely useful as a metric. unogs.com is your friend.

          Oh, and I wouldn't lump Netflix into the same category as Prime when talking about UIs. Netflix is mostly usable, Prime ought to be a textbook example of how not to design such a UI.

          "plot synopsis got squeezed down to a 1-liner in most cases."

          I'm less bothered by that and more bothered by when the synopsis says something like "Variety says this modern classic is not to be missed". Yeah, and? What's it about!?

          "I think both are trying to meet the definition of doom-scrolling"

          Doom scrolling videos? You sure you're not in the Fox News app by mistake?

          For me it's more like: Oh, that looks interesting. [add to watchlist] Oh, no, not for me. Nope to that too. Oh, that looks interesting. [add to watchlist] Oh, no, not for me. Oh, that looks interesting. [add to watchlist] Oh, that looks interesting. [add to watchlist] Half an hour later: Oh, I'm too bloody tired, time for bed...

          1. Jellied Eel Silver badge

            Re: I would have imagined...

            I do and it's pretty much the same as you describe. The "shelves" (not sure that's a good word but I can't think of a better one) are often full of fairly recent things or popular things and some of the more niche things only turn up if searched for or by accident.

            I think 'shelves' is the official term, and is meant to describe the chaos that Netflix and other streaming services use to describe their content organisation. I have real shelves bracketing this desk, with books and DVDs on them. Difference is they're organised the way I want, not how Neflix thinks I want them.. Which is my gripe. I want the power to organise 'shelves'. So as an example, the first 'shelf' in my current view is-

            "Because you watched Cold Pursuit.."

            And then 9 videos that seem very vaguely related, and have metadata like 'visually striking', and 3 of the recommendations I've already watched. And then other 'shelves' are full of genres I probably don't want to watch, and an odd mix of videos that it knows I've watched, watched a bit of and abandoned, or watched but Netflix seems to have forgotten.

            Perhaps, but given that it is an always-changing thing it's not entirely useful as a metric. unogs.com is your friend.

            But it's useful to me. So I want to have some control over the impersonal personalisation, and organise content the way I want. Netflix and other services collect a lot of user data in an attempt to profile us, but the results generally suggest they don't know me at all. I shouldn't have to rely on 3rd party services to try and find something to watch, and I shouldn't have to rely on wiki to find out what a video is about. And apparently Netflix currently only has 40 horror movies or shows, which is probably a limit imposed by Netflix rather than the reality.

            But it's also probably indicative of the chaos behind the scenes. AWS is quite content to charge Netflix for all the queries generated by users like me, desperately trying to find something to watch, or just generating shelves full of stuff I don't want. So I'm not suprised Netflix is struggling to understand AWS, and curious how much it could reduce their bills by just giving me some kind of control.

    2. Rainer

      Re: I would have imagined...

      They run their own, private CDN. Google Netflix Open Connect.

    3. The Mole

      Re: I would have imagined...

      The costs at the edge are relatively constrained. They make deals with with all the major telcos to place Netflix boxes inside their networks which has the massive advantage to the telcos that their interconnects and core routes aren't being saturated with Netflix traffic.

  6. Anonymous Coward
    Anonymous Coward

    I'm currently working on a small application that, by corporate policy, is spread over a family of AWS services. There is some logic to having it configured so it costs nothing while it's not being used, but the engineering overhead of a whole lot of services and all the connections between them means that setting up deployment has almost certainly taken more engineering resources than writing the whole application would have if it was a simple API running on a single VM.

    It's fine from my point of view - some handy additions to my CV - but I don't know that it's doing the business any good.

    1. Admiral Grace Hopper

      Wait for the business' response when your colleague's code spins up an extra million or so instances due to a mistyped bounding condition. All of a sudden the management overhead that stops that sort of thing looks like money well spent. Ask me (or better still, my colleague) how I (we) know.

  7. Anonymous Coward
    Anonymous Coward

    I've played around with AWS and the complexity of simple things such as where they put everything is purposely obfuscating in my opinion. That's just me playing about. I can imagine if you are in an organisation such as Netflix with multiple users it gets even more infinitely complex to keep track of. It's why we have cloud software and people employed solely to keep track of spend. The question is could AWS make it straight forward? Sure but why would they do that when a single mistake can make them £1000's. It is absolutely all by design.

    1. Headley_Grange Silver badge

      xyzzy

      "I've played around with AWS and the complexity of simple things such as where they put everything is purposely obfuscating..."

      Is there a "...... maze of twisty little passages, all alike."? Does shouting "Xyzzy" help?

      1. Dizzy Dwarf

        Re: xyzzy

        Nah, nothing happens.

    2. Anonymous Coward
      Anonymous Coward

      I work for a company who is a big user of AWS - large setups in multiple regions, prod, dev, sandbox environments, you name it, we've got it. And we've been asked to put our name in any resources we create to make it easier to track who is using what.

      I'm not agreeing with you,nm just saying there are easier things to follow than AWS...

  8. Doctor Syntax Silver badge

    "A Foundational Platform Data "

    Let's try translating that into English: "A foundational platform things given". Nope. Still makes no sense, does not even parse.

  9. Tron Silver badge

    A new definition for 'middleware'.

    The stuff between the originator of a service and the user, that makes all the cash.

    Auction houses have always done this. They charge both the buyer and seller a fee and make money even if something does not sell.

    Economically, it is like subscribing rather than buying. For a bit of convenience you pay through the nose and lose the ownership rights and control. Your balls are on someone else's chopping block and you have to keep handing over as much cash as they ask for.

  10. Nate Amsden

    the lengths they go through

    To justify continuing to use amazon is just sad. Goes to show how broken the mindset is for public cloud. Especially when that cloud is a major competitor.

  11. Fruit and Nutcase Silver badge
    Coat

    Oracle Licence Auditors

    Have AWS been hiring ex-Oracle Licence Auditors who've bought their [best/dubious] practices with them?

  12. Missing Semicolon Silver badge

    Amazing

    It requires a team, and a big project, to construct an analysis framework to just be able to predict the bill.

    And it will need constant maintenance, as no doubt AWS fiddle with the billing/admin interfaces all the time, so you end up playing whack-a-mole on AWS' attempts to make the data you need harder to find or be less analysable.

    1. doublelayer Silver badge

      Re: Amazing

      It doesn't take a massive service to predict the bill. It takes a massive service to figure out where all the bill came from. To some extent, that's not unique to cloud services either. The thousands of different products that AWS or someone else offers makes it a bigger task, but you can have hideous snarls with any other large system. Trying to figure out who is using what kind of server resource can be complex even if you own the servers. Either you have clustered them and individual teams can provision resources, in which case you know when you're taxing them and need to expand but you don't necessarily know how it is being used or how necessary each load is, or you require them to plan this out for specific machines, in which case you know what everyone is using but it makes each increase in resources a drawn out process whenever teams need to expand.

  13. hx

    accounting codes

    Just remember to add the accounting code to your card stack before you submit your job to the mainframe, err, AWS, so that we can know who to bill.

    1. doublelayer Silver badge

      Re: accounting codes

      Oh, that happens. That's how you have companies with a hundred AWS accounts for each division. Sometimes, they also separate dev, test, and prod into different accounts, so make that three hundred. IAM becomes a headache then, but I think IAM is nearly always that way.

  14. IGotOut Silver badge

    Well it's obvious...

    They clearly thought they were paying for X simultaneous connections, but really there were ACTUALLY only paying for for X connections from the very same building.

    If they wanted X connections, they would need to buy a load of Y connections, from multiple locations, for double the cost,

    Yes I cancelled my for that very reason....and the fact its pretty much the same shitty content, just with a different name

    1. Fruit and Nutcase Silver badge
      Joke

      Re: Well it's obvious...

      Yes I cancelled my[IGotOut] for that very reason....

  15. Sparkus

    Even Amazon Prime Video....

    has reportedly abandoned the AWS micro-services model as unworkable at scale.....

  16. Anonymous Coward
    Anonymous Coward

    For any enterprise, ask AWS, Azure or GCP to explain their billing to you and they wouldn't have a clue. All three arrive at a number from somewhere and every month we have team challenging them and 3 can't explain and change their number.

  17. joed

    snake eats its tail?

    At what point the effort exerted to measure the cloud spend becomes equal the usage it's trying to evaluate. Win win or lose lose?

    1. Wang Cores

      Re: snake eats its tail?

      Around the time hell freezes over and AI stops being the obsession of the ruling class, in that order.

  18. phuzz Silver badge

    I'd love to know what triggered this. I'm guessing someone was testing something and ended up leaving many large instances running, but never realised because the AWS bills go to accounts, not them.

    1. doublelayer Silver badge

      That's almost certainly one of the costs. It's the cloud equivalent of "What's that server? Does anybody know? Has anyone logged into this thing in the last five years? Could anyone log into this if we needed to?", but you pay every month for the server, not just the power and cooling.

  19. fg_swe Silver badge

    Competition ?

    We have OVH, Hetzner, 1und1, Schwarz IT/StackIT and quite a few more cloud providers here in Germany and France.

    Hetzner now also has a DC in Finnland, where leccy is cheaper than Germany.

    OVH can use competitive french nuclear power and has DCs in several countries.

    Why be locked in to the giants if smaller and easier to understand competitor exist ?

    I can recommed Hetzner, fixed, predictable price and excellent reliability and customer service.

    Edit: Hetzner has even more DC locations: https://www.hetzner.com/de/unternehmen/rechenzentrum/

    1. Oneman2Many Bronze badge

      Re: Competition ?

      Ah, somebody who has not worked in a enterprise environment.

      1. fg_swe Silver badge

        Of Course

        ...the US giants will claim that only they can do "enterprise" workloads.

        Which is wrong. Hetzner has a full blown API for creating and deleting cloud resources

        https://docs.hetzner.cloud/#overview

        Probably not as exquisite as AWS, but more transparent ?

        1. Oneman2Many Bronze badge

          Re: Of Course

          2 locations in Germany, 1 in Finland, 2 co-lo in US, 1 Co-lo in Singapore.

          Only seem to offer IaaS ?

          No exactly Enterprise.

          1. fg_swe Silver badge

            Hetzner

            You can order resources in very small increments, starting from 2 ARM cores. Full control of these increments at root level. Transparent cost.

            They also have storage services, though probably not as complex as AWS.

            1. Oneman2Many Bronze badge

              Re: Hetzner

              You are still thinking IaaS, that is just moving hosting from on-prem to off prem. Modern apps which netflix and most enterprises use don't use IaaS, they won't be wanting to deploy windows or linux. No mention of containers or K8 or anything thar supports modern architecture. Also no mention of multi-zones or HA.

          2. fg_swe Silver badge

            Hetzner Versus Amazon

            https://www.reddit.com/r/hetzner/comments/g4unpe/aws_vs_hetzner/?rdt=44412

            Looks like a great option IF you have skilled administrators and developers on board.

            Also, very little lockin as compared to AWS.

            1. fg_swe Silver badge

              Re: Hetzner Versus Amazon

              https://www.reddit.com/r/hetzner/comments/pm6dde/i_did_a_comparisonbenchmarks_of_some_popular/

    2. doublelayer Silver badge

      Re: Competition ?

      Depending on what you're doing and how it's architected, those services can in fact be a competitive option. Specifically, if you would ordinarily be buying normal VMs from the big cloud providers. If your AWS bill is just EC2, S3, and bandwidth, or for the sake of not having a monopoly in this sentence your Azure bill is just VMs, storage accounts, and bandwidth, then these other companies can probably be used in the same way without too much difficulty. If there are more things on that bill that you intend to keep, it is not as easy.

      The large clouds aren't just renting out servers. They're also renting out lots of software running on those servers. That software is used to develop and scale things. You could build similar functionality yourself, but development time and financial costs increase and inevitable bugs become a serious problem for those developers. Larger companies often have the resources to do that themselves and small projects often don't need it, but the medium-sized products are where there are significant reasons why people choose to design with those features, and sometimes those medium-sized companies become large ones and, although they may well eventually build it all themselves and stop using the cloud providers, they have enough inertia that it takes a long time to do so. Managed databases, functions as a service, notification systems for distributed applications, load balancers, and many other things are popular with some people. Individually, you don't really need the cloud provider to charge you to run each of those, but if you're using a lot of them, it can be costly to do it yourself. If you're running the servers in your own building or renting them from an IaaS company like the ones you mentioned, you are still doing that part yourself.

  20. JLV

    Seems to me a lot of comments going on - justifiably - about the vagaries of public cloud is somewhat missing a major point.

    Netflix isn't 37 Signals, which brought stuff back in house and showed how much they saved.

    Netflix has to provide reasonable last-mile data transit times to hundreds of millions of people around the world. That means hosting a lot of very heavy data in a lot of very dispersed locations, with a lot of unpredictable spiking when something exciting drops and catches the zeitgeist. The decision matrix for doing this is not the same as that of a large bank pondering self-hosting, even though they do stuff like the Netflix OCAs.

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