Hacker News new | ask | show | jobs
by vidarh 3814 days ago
I can guarantee you that Netflix are not paying anything remotely like the advertised rates for EC2.

I know first hand the kind of discounts some companies much, much smaller than Netflix can get, and they are steep. EC2 is still expensive then too, but if you pay, say, a million a year to Amazon without massive discounts, you've not done your job when negotiating.

But yes, someone with the leverage Netflix has will be paying relatively reasonable rates for EC2 services. But pretty much nobody else has the leverage Netflix has.

> I've heard the non-AWS folks talk of these vendor lock ins or long term costs but aren't those irrelevant in 2016+?

Paying far above market rates is never going to be irrelevant, because if you pay above market and your competitor doesn't, chances are they'll have you for breakfast thanks to better margins.

Why in the world would you agree to pay above market rates to get locked in for 1-3 years when you can pay less on a month-by-month contract?

2 comments

Netflix could even be paying less than cost, as a loss-leader for AWS.
Feels like AWS is less of a vendor lock than building it inhouse. Doing it all inhouse has a high upfront cost that must be realized over X years irrelevant of the outcome. On the other hand if one implemented a microservices architecture, moving off AWS month-to-month service to another provider is far easier. Did I miss something?
How is microservices related here? They're built in-house too. It's still just services/apps/code that has to run somewhere.

You can run it on AWS or somewhere else but moving is always a problem regardless.

There are no month-to-month costs with Amazon that I'm aware of. There are hour by hour, and 12 month and 36 month commitments.