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242 points panrobo | 1 comments | | HN request time: 0.236s | source
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0xbadcafebee ◴[] No.42057644[source]
GEICO is moving away from the cloud because their IT is a joke. They had a horrible on-prem infrastructure, so they moved to the cloud not knowing how, and they made the same mistakes in the cloud as on-prem, plus the usual mistakes every cloud migration runs into. They are moving away from the cloud because their new VP's entire career is focused on running her own hardware. What we know about their new setup is absolutely bonkers (like, K8s-on-OpenStack-on-K8s bonkers). Look to them for what not to do.

37signals is like the poster child for NIH syndrome. They keep touting cost savings as the reason for the move, but from what I have gathered, they basically did nothing to save cost in the cloud. It is trivial to save 75% off AWS's list price. They will even walk you through it, they literally want you to save money. That, plus using specific tech in specific ways, allows you to reap major benefits of modern designs while reducing cost more. 37signals didn't seem to want to go that route. But they do love to build their own things, so servers would be a natural thing for them to DIY.

Almost every argument against the cloud - cost inefficiency, fear of vendor lock-in, etc - has easy solutions that make the whole thing extremely cost competitive, if not a way better value, than trying to become your own cloud hosting provider. It's very hard to estimate the real world costs, both known and unknown, of DIY hosting (specifically the expertise, or lack of it, and the impacts from doing it wrong, which is very likely to happen if cloud hosting isn't your core business). But it's a 100% guarantee that you will never do it better than AWS.

AI is the only place I could reasonably imagine somebody having an on-prem advantage. At the moment, we still live in a world where that hardware isn't a commodity in the way every other server is. So you might just be faster to deploy, or cheaper to buy, with AI gear. Storage is similar but not nearly as tight a market. But that will change eventually once either the hype bubble bursts, or there's more gear for cheaper for the cloud providers to sell.

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1. vidarh ◴[] No.42059150[source]
It's very easy to estimate the real-world cost of on-prem or dedicated hosting - there is a wide range of providers that will quote you fixed monthly prices to manage it for you (including me) because we know what it costs us to manage various things for you.

AI is the only place I don't currently see much on-prem advantage, because buying SOTA equipment is hard, and it gets outdated too quickly.

For pretty much everything else, if you can't save 70%+ TCO, maintenance/devops included, over an optimized cloud setup, you're usually doing something very wrong, usually because the system is designed by someone who defaults to "cloud assumptions" (slow cores, too little RAM, too little fast storage, resulting in systems that are far more distributed than they need be is the typical issue).