But their egress capacity is limited, not? We're talking about 1PB per month here. If every customer of them would be paying only 13 cents a month and pushing out 1PB per month, wouldn't they need to significantly upgrade their hardware and lose money in the process?
Just as an fyi, eastDakota is in Cloudflare’s executive team. Think he’s their CEO.
Not saying not to trust him - he’s probably a very reasonable and standup guy - but you should know this about him before taking his word on a topic like this.
"If every customer of them would be paying only 13 cents a month and pushing out 1PB per month, wouldn't they need to significantly upgrade their hardware and lose money in the process?"
Yes, but every customer would never do this, so what is your point?
You have to think more in terms of averages for things like this
I'm abusing the hell out of it right now offering GB+ downloads that I used to use Digital Ocean Spaces for. It's saving me $2000-3000 a month since the switch.
Maybe abuse isn't the right word but definitely making the most.
I am a bit scared about being turned off overnight though.
Just for the sake of enlightening some people. Roughly $1000 per month buys you unlimited/unmetered 10GBe (10GBps) connectivity to your server/rack (do you know what this is?), from a tier-1 network provider.
This translates to roughly 1.2 gigabytes per second (every second of of the month), and 3240 terabytes of data per month - in or out, the choice is yours.
Things scale down as you buy more bandwidth, or commit to a longer contract.
Many would say that $1000 per month is literally "nothing" in terms of costs of service for most real businesses our there, and if you're a happy CSP user, you're probably paying a hell of a lot more than that per month for your infra.
Yes R2 is likely loosing money in this case. But network capacity and switches is not that expensive the way AWS is charging for it. For $60k/month or $720k/year, AWS is basically giving 3GB/s.
I feel R2 should charge something for transfer though, otherwise people could abuse it. Hetzner charges ~1.5% of AWS egress fees which I feel is right thing to do and likely profitable.
One hour 4K Netflix episode would be around 1Gb magnitude and likely watched by even more than 1M ppl. Game downloads even bigger, often at several Gb, with similar amount of users.
Cloudflare doesn't pay for egress and neither does AWS.