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by efitz
684 days ago
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I think a better description than “underutilized” would be “sunk capex cost” - Google (or any cloud provider) cannot run at 100% customer utilization because then they could neither acquire new customers nor service transitory usage spikes for existing customers. So they stay ahead of predicted demand, which means that they will almost always have excess capacity available. Cloud providers pay capital costs (CapEx) for servers, GPUs, data centers, employees, etc. Utilization allows them to recoup those costs faster. Cloud customers pay operational expenses (OpEx) for usage. So Google generally has excess capacity, and while they would prefer revenue-generating customer usage, they’ve already paid for everything but the electricity, so it’s extremely cheap for them to run their own jobs if the hardware would otherwise be sitting idle. |
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As you run close to 100% utilization, you also run close to infinity waiting times. You don't want that. It might be acceptable for your internal projects (the actual waiting time won't be infinity, and you'll cancel them if it gets too close to infinity) but it's certainly not acceptable for customers.