Tuesday, April 25, 2023

Ahead of Microsoft's and Amazon's Earnings: Are Companies Saving Money By Not Using The Big Three Cloud Purveyors? (to be determined)

Following up on Sunday's "Amazon and Microsoft’s AI Gains Mask Cloud Slowdown" we have MSFT reporting today after the close and Amazon reporting on April 27.

This is the second article at The Register on this topic to which our attention has been directed and if we see three it might mean the crossover from anecdote to trend.

From The Register, March 13:

Singapore software maker says own hardware in colo costs $400M less than cloud
‘Wouldn’t be profitable, or exist, if our products were 100% on AWS’

Singaporean search engine optimization tools slinger Ahrefs has claimed that keeping its infrastructure on-premises, rather than using Amazon Web Services, will save it $400 million over three years.

A March 9th post by one of the company’s datacenter operations execs, Efim Mirochnik, compared the cost of acquiring its fleet of 850 servers (an image in his post depicts Dell EMC kit) and running them in a co-located datacenter with the cost of running a similar rig in Amazon Web Services.

Mirochnik calculated the cost per server per month is $1,500, including acquisition cost of the server.

In AWS he believes the company would pay $17,557 per equivalent server....

....MUCH MORE, including some previous articles on this topic. 

The other piece that was pointed out to yours truly was January 16's:

Basecamp details 'obscene' $3.2 million bill that caused it to quit the cloud

that was going to be linked under the headline "The Cost of Living In the Cloud Seems Quite High (AMZN; GOOG; MSFT)" when discretion counseled a wait and see approach.