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by toast0 895 days ago
My personal feeling is they're moving costs around so that egress has a big margin and other items have a smaller or potentially negative margin.

I've seen this at other providers. We did a competitive pricing exercise at my last company, and our overall cost went down, but the mechanism was per hosts costs went down significantly and egress costs went up significantly, and the per host cost decrease outweighed the egress cost increase.

It still doesn't make sense to charge for ingress, because everybody knows that should be free, unless you're a residential ISP.

2 comments

Many companies in many industries do this. It’s often simply not practical or sensible to price every SKU “fairly “ on some value or cost basis. Your margin varies from item to item (including negative) and the whole bundle works out.
y'all vastly underestimate how much it costs to run a CDN as large as that at scale.

bandwidth from cogent at whatever colo you can cross connect to them is wildly cheaper than "i need bandwith to everywhere" bandwidth.