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Mac iobserve earth animation7/11/2023 ![]() ![]() Margin is a really weird statistic to calculate in the "cloud". That's why AWS, and Azure, and GCP are so much more expensive. Nearly all of Hetzner's costs are in the hardware. Very few of AWS's costs are in the hardware. I've found AWS Transfer for SFTP to be the most egregious and actually exploitative example of this it effectively puts an SFTP gateway in front of an S3 bucket, and they'll charge you $216/month + egress AND ingress at ~150% the standard egress rate for that benefit (SFTP layers additional egress charges on-top-of the standard AWS transfer rates). EC2 and S3 are likely very close to 0% margin but DynamoDB, EFS, Lambda, etc are much higher margin. What Amazon does is build valuable software and services around those raw resources, then put huge margins on those products. Networking is an exponential problem AWS doesn't overcharge for egress, they just simply haven't invested in building a solution that sacrifices quality for cost.Īmazon really does not have a history of throwing huge margins on raw compute resources. A typical AWS region has terabits upon terabits of nano-second scale latency fiber ran between its AZs and out to the wider internet. Many people complain about AWS' networking costs, but I also suspect these are generally at-cost. Sure, they're more expensive than, just for comparisons' sake, Linode or DigitalOcean, but EC2 instances are also roughly the same cost per-core and per-gb as Azure compute instances, which is a far more accurate comparison. ![]() I don't feel as sure about this there's very little evidence that Amazon is putting a "50% margin", or any significant percent, on x86 servers.
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