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From S3 to R2: An economic opportunity

(dansdatathoughts.substack.com)
274 points dangoldin | 2 comments | 02 Nov 23 19:15 UTC | HN request time: 0.429s | source
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simonsarris ◴[02 Nov 23 19:47 UTC] No.38118991[source]▶
Cloudflare has been attacking the S3 egress problem by creating Sippy: https://developers.cloudflare.com/r2/data-migration/sippy/

It allows you to incrementally migrate off of providers like S3 and onto the egress-free Cloudflare R2. Very clever idea.

He calls R2 an undiscovered gem and IMO this is the gem's undiscovered gem. (Understandable since Sippy is very new and still in beta)

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ravetcofx ◴[02 Nov 23 20:00 UTC] No.38119194[source]▶
What are the economics that Amazon and other providers have egress fees and R2 doesn't? Is it acting as a loss leader or does this model still make money for CloudFlare?
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Nextgrid ◴[02 Nov 23 20:18 UTC] No.38119489[source]▶
Completely free egress is a loss leader, but the true cost is so little (at least 90x less than what AWS charges) that it pays for itself in the form of more CloudFlare marketshare/mindshare.
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1. WJW ◴[02 Nov 23 20:43 UTC] No.38119872[source]▶
I know from personal experience that "big" customers can negotiate incredible discounts on egress bandwidth as well. 90-95% discount is not impossible, only "retail" customers pay the sticker price.
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2. martinald ◴[02 Nov 23 21:51 UTC] No.38120756[source]▶
That's still a 3-10x markup though. And it's also very dependent on your relationship with AWS. What happens if they don't offer the discount on renewal?