You just have to believe that, on the scale on AWS, 1Mbps in Europe costs 0.08$ (includes the transit, the hardware, the people etc). This includes every networking parts : do not forget the switches and stuff : VPC are free, and intra-zone network is free. Someone must pay, so it is sane to assume that "someone" is partly cross-region, partly internet egress, partly cross-zone.
Don't forget the R&D that revolves around VPC, subnets, security groups, acl etc.
So, yes, 0.08$/Mbps. Known from an external source which is a (partly) competitor. Trust me, dude. This number is legit.
There's a bunch of providers in Europe that will give you a whole server for €50/month with unmetered 1gbps networking. Or, as I like to consider it, €50/month for 1 gbps networking, and you get a free server.
Yeah, their networks may not have as much complexity and features as AWS, but I've never found any of that complexity appealing. Keep your network simple and let your hosts do the work.
Average is playing here : you pay 50€/mo for 1gbps, and takes into account that most people won't use 1Gbps
It is the same for home internet connections : the offers is defined by the average use.
AWS and friends, on the other side, do not care about averages, and avoid you that burden too : what matter is how much you consumed, not "when" or "how" you consumed int
Do remember this isn't the cost of an actual unmetered 1Gbps, just the part they expect you to use on average. I know Hetzner is pretty generous, but some people have been asked to reduce their bandwidth after using 250TB/month consistently for several months (that's about an actual fully utilized 1Gbps).
Amazon builds their own switches so they are not paying some insane cost for hardware/software/support to a company like Cisco. Generic network infrastructure is dirt cheap now (take a look at fs.com). Granted it is not trivial to build your own custom switch and you need to hire some really smart people to do this but I am sure this paid off tremendously for AWS.
Anyway, I can’t tell what your point is, but keep in mind that nearly all the complexity you discuss, and nearly all the hardware needed, applies to within-AZ traffic as well, and AWS doesn’t charge for that.
You just have to believe that, on the scale on AWS, 1Mbps in Europe costs 0.08$ (includes the transit, the hardware, the people etc). This includes every networking parts : do not forget the switches and stuff : VPC are free, and intra-zone network is free. Someone must pay, so it is sane to assume that "someone" is partly cross-region, partly internet egress, partly cross-zone.
Don't forget the R&D that revolves around VPC, subnets, security groups, acl etc.
So, yes, 0.08$/Mbps. Known from an external source which is a (partly) competitor. Trust me, dude. This number is legit.