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by mythz
3617 days ago
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Pure B.S. Cloud providers over charge for bandwidth because they can, they treat it like a luxury cost like RAM where if you need more bandwidth you can usually afford to pay for it. It's not the "right" cost, it's the price AWS set which Azure copied. Bandwidth is dirt cheap outside of the Cloud, e.g. I'm getting 30 TB of bandwidth as part of my 64GB RAM / 500GB SSD / Quad-Core i7 Skylake for €39 /mo (https://www.hetzner.de/us/hosting/produkte_rootserver/ex41ss...). Which roughly equates to €0.0009 /GB that also includes the cost of hosting entire server with resources that would cost an order of magnitude more on AWS/Azure. |
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Enterprise level network equipment and infrastructure are extremely expensive. Unusually cheap BW rate usually means cheap equipment or over-subscription or not enough qualified support personnel. And in some cases under-selling to get penetration to a market.
The reason Google Fiber can sell cheaply because (AFAIK), in almost every town or cities that they deployed their network they negotiated special deals with municipalities or equivalent entity to get free access to existing infrastructure or get special deals. There is a reason why Google Fibre is not everywhere or they are not pushing it very aggressively. Because building networks are freaking expensive even for google.
BW may not have any value but building the network and maintaining it to serve you BW is expensive. Your BW cost is a reflection of the cost of your network.
Disclaimer: I own an ISP.