| Yeah, this is really where they get you. For context, if you were to buy 10Gbps of dedicated internet transit, he.net is currently advertising that for $900/month. If we convert that to GB per month it's 3,240,000GB, so we can calculate what AWS would charge based on list prices. Using their pricing calculator:
https://calculator.aws/#/createCalculator Outbound from Cloud Front or US West (Oregon) to the Internet: $165,891.11 That's a 184 x increase in price! So yeah, you have to buy networking gear and other stuff, but you can get quite a bit of gear for $165K/month. Now you don't really want to run that 10Gbps link flat out like that, but you get the point. The AWS markup on bandwidth costs is absolutely insane. Pro tip: if you have a large enough cloud provider spend, you can negotiate the bandwidth prices down quite a lot, given their markup, they have some room to move. |