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- Hacker News
- Its not actually that hard to get your own server racked up in a data centre, I have done it. Since it was only one box that I built and installed at home I just shipped it and they racked it in the shared area and plugged the power and network in and gave me the IP address. It was cheaper than renting from someone like hetzner, was about £15 a month at the time for 1A and 5TB a month of traffic at 1gbps. Also had a one off install fee of £75.
At the time I did this no one had good gaming CPUs in the cloud, they are still a bit rare really especially in VPS offerings and I was hosting a gaming community and server. So I made a pair of machines in a 1U with dual machines in there and had a public and private server with raid 1 drives on both and redundant power. Ran that for a gaming server for many years until it was obsolete. It wasn't difficult and I think the machine was about £1200 in all, which for 2 computers running game servers wasn't too terrible.
I didn't do this because it was necessarily cheaper, I did it because I couldn't find a cloud server to rent with a high clockspeed CPU in it. I tested numerous cloud providers, sent emails asking for specs and after months of chasing it down I didn't feel like I had much choice. Turned out to be quite easy and over the years it saved a fortune.
by PaulKeeble - While I love a good cloud bashing, it's really not black and white. If you're really small, it probably doesn't matter much if you're using Hetzner or AWS, but co-location might be a bit to expensive. If you run an absolutely massive company, cloud vs. self-hosted comes down to whether or not you can build tooling as good as AWS, GCP or Azure, with all the billing infrastructure and reporting.
The issues are mostly in the SME segment and where it really depends on what your business is. Do you need completely separate system for each customer? In that case, AWS is going to be easier and probably cheaper. Are you running a constant low 24/7? Then you should consider buying your own servers.
It's really hard to apply a blanket conclusion to all industries, in regards to cloud cost and whether or not it's worth it. My criticism in regards to opting for cloud is that people want all the benefits of the cloud, but not use any of the features, because that would lock them into e.g. AWS. If you're using AWS as a virtual machine platform only, there's always going to be cheaper (and maybe better) options.
by mrweasel - I'd be more interested to understand (from folk who were there) what the conditions were that made AWS et al such a runaway hit. What did folks gain, and have those conditions meaningfully changed in some way that makes it less of a slam dunk?
My recollection from working at a tech company in the early 2010s is that renting rack space and building servers was expensive and time consuming, estimating what the right hardware configuration would be for your business was tricky, and scaling different services independently was impossible. also having multi regional redundancy was rare (remember when squarespace was manually carrying buckets of petrol for generators up many flights of stairs to keeps servers online post sandy?[1]).
AWS fixed much of that. But maybe things have changed in ways that meaningfully changes the calculus?
[1] https://www.squarespace.com/press-coverage/2012-11-1-after-s...
by tqi - The author touches on it briefly, but I'd argue that the cloud is immensely helpful for building (and tearing down) an MVP or proving an early market for a new company using startup credits or free tiers offered by all vendors. Once a business model has been proven, individual components and the underlying infrastructure can be moved out of the cloud as soon as cost becomes a concern.
This means that teams must make an up-front architectural decision to develop apps in a server-agnostic manner, and developers must stay disciplined to keep components portable from day one, but you can get a lot of mileage out of free credits without burning dollars on any infrastructure. The biggest challenge becomes finding the time to perform these migrations among other competing priorities, such as new feature development, especially if you're growing fast.
Our startup is mostly built on Google Cloud, but I don't think our sales rep is very happy with how little we spend or that we're unwilling to "commit" to spending. The ability to move off of the cloud, or even just to another cloud, provides a lot of leverage in the negotiating seat.
Cloud vendors can also lead to an easier risk/SLA conversation for downstream customers. Depending on your business, enterprise users like to see SLAs and data privacy laws respected around the globe, and cloud providers make it easy to say "not my problem" if things are structured correctly.
by shooker435 - I took care of IT for a startup hedge fund once. I was the quant's right-hand man, data engineer, visualization dashboard guy, everything. The quant needed to run a monolithic C++ program daily to chew through stock data and we decided a dual-Xeon server with 512 GB RAM would be great. OVH MG-512, for those curious.
Quant happy, boss happy, all good. Then the boss goes for lunch with someone and comes back slightly disturbed. We were not buzzword compliant. Apparently the other guy made him feel that he was using outdated tech by not being on AWS, using auto-scaling etc;
Here I am, from a background where my first language was 8086 assembly, and compactness was important to me. I remember thinking, "This whole thing could run on a powerful calculator, except for the RAM requirement".
It was a good lesson for me. Most CTOs know this bias and have unnecessarily huge and wasteful budgets but make sure they keep the business heads happy in the comfort that the firm is buzzword compliant. Efficiency and compactness are a marketing liability for IT heads!
by vijucat - I'm fully aware this is pedantic, but you can't save 10x. You can pay 1/10. You can save 90%. Your previous costs could have been 10x your current costs. But 10x is more by definition, not less. You can't save it.by jaredhallen
- This is all correct. I've been running my own servers for many years now, keeping things simple and saving a lot of money and time (setting anything up in AWS or Azure is horribly complicated and the UIs are terrible).
One thing to remember is that you do need to treat your servers as "cloud servers" in the sense that you should be able to re-generate your entire setup from your configuration at any time, given a bunch of IPs with freshly-installed base OSs. That means ansible or something similar.
If you insist on using cloud (virtual) servers, do yourself a favor and use DigitalOcean, it is simple and direct and will let you keep your sanity. I use DO as a third-tier disaster recovery scenario, with terraform for bringing up the cluster and the same ansible setup for setting everything up.
I am amused by the section about not making friends saying this :-) — most developer communities tend to develop a herd mentality, where something is either all the rage, or is "dead", and people are afraid to use their brains to experiment and make rational decisions.
Me, I'm rather happy that my competitors fight with AWS/Azure access rights management systems, pay a lot of money for hosting and network bandwith, and then waste time on Kubernetes because it's all the rage. I'll stick to my boring JVM-hosted Clojure monolith, deployed via ansible to a cluster of physical servers and live well off the revenue from my business.
by jwr - I dislike those black and white takes a lot. It's absolutely true that most startups that just run an EC2 instance will save a lot of cash going to Hetzner, Linode, Digital Ocean or whatever. I do host at Hetzner myself and so do a lot of my clients.
That being said, the cloud does have a lot of advantages:
- You're getting a lot of services readily available. Need offsite backups? A few clicks. Managed database? A few clicks. Multiple AZs? Available in seconds.
- You're not paying up-front costs (vs. investing hundreds of dollars for buying server hardware) and everything is available right now [0]
- Peak-heavy loads can be a lot cheaper. Mostly irrelevant for you average compute load, but things are quite different if you need to train an LLM
- Many services are already certified according to all kinds of standards, which can be very useful depending on your customers
Also, engineering time and time in general can be expensive. If you are a solo entrepreneur or a slow growth company, you have a lot of engineering time for basically free. But in a quick growth or prototyping phase, not to speak of venture funding, things can be quite different. Buying engineering time for >150€/hour can quickly offset a lot of saving [1].
Does this apply to most companies? No. Obviously not. But the cloud is not too expensive - you're paying for stuff you don't need. That's an entirely different kind of error.
[0] Compared to the rack hosting setup described in the post. Hetzner, Linode, etc. do provide multiple AZs with dedicated servers.
[1] Just to be fair, debugging cloud errors can be time consuming, too, and experienced AWS engineers will not be cheaper. But an RDS instance with solid backups-equivalent will usually not amortize quickly, if you need to pay someone to set it up.
by Sebb767