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by magila
2847 days ago
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The hosting cost for things like Facebook and Twitter are a pittance compared to the cost of employing all of the engineers/designers/etc who enhance and maintain those services. That IMO is the biggest economic challenge facing decentralized applications. You can make some nice proof-of-concepts with a group of volunteers, but the effort required to provide a UX comparable to centralized services is going to take more than a handful of people working evenings and weekends. Decentralized services generally do not afford the same monetization opportunities as central services. Decentralized proponents consider this a feature rather than a bug, but it leaves open the question: Who is going to pay for all of this? |
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Facebook had $20.4 billion in operating expenses in 2017. Less than 1/3 of that was the cost of its 25,000 employees (at the end of 2017). Facebook is spending more on its infrastructure than it is on all of its employees combined (and that much more when you reduce it to just engineers). Engineers are maybe 1/5 of its operating costs, including their all-in costs.
Both Facebook and Alphabet had roughly $15 billion in total capex for 2017. Data centers, networks, electricity, et al. cost a lot at that scale. It's not a pittance. Facebook spent ~$7 billion in 2017 on capital expenditures related to their network, data centers, etc.
Facebook's first Asia data center is a billion dollars to just start up.[1] When they put up new data centers in places like Henrico County VA, New Albany OH, or Newton County GA, it's similarly nearly a billion dollars a shot to start those up. Once you have dozens of those operating, it's billions of dollars per year to operate them all.
[1] https://money.cnn.com/2018/09/06/technology/facebook-singapo...