| >While AWS and Azure are industry leaders, their advantages often only materialize at massive scales. [...] Your comparisons are similar to many others out there that focus on measuring basic cpu and memory. This type of easy comparison where AWS/Azure/GCP is treated as a "dumb" datacenter is easy for alternatives like Hetzner or self-hosting to "win". >Do you really need the advanced features of AWS and Azure right now? Or would a simple virtual machine at a reasonable price be sufficient? [...] There’s a growing movement among tech companies and startups to opt for more cost-effective hosting solutions like Hetzner. The high costs associated with AWS and Azure Many (most?) YC startups are not using AWS as a low-level dumb data center with blank EC2 virtual machines and installing infrastructure software like Linux and PostgreSQL on it. Instead, they are using higher-level AWS managed services such as DynamoDB, Kinesis, SQS, etc : Therefore, the more difficult comparison (that almost no blog post ever does) is the startup's costs for its employees to re-create/re-invent the set of higher-level AWS services that they need. Sure, there's the "but you don't need to pay expensive AWS costs for DynamoDB when one can just install open-source Cassandra at Hetzner; and instead of AWS Kinesis, install your own Kafka, etc". Well, you add up more and more of those "just install and manage your own X,Y,Zs" and you can end up crossing the threshold where paying AWS cloud fees cost less than your staff maintaining it. The threshold for AWS isn't just massive scale of 100+ million users. The threshold can be the complexity and scope of higher-level services you need the cloud to take care of on your behalf so your small team can concentrate on the aspects of the business that are true differentiators. In other words, instead of employees installing Cassandra, they're adding features to the smartphone app. If your company doesn't need any of the Big 3 clouds' higher-level platform services, it's easier to save money with alternatives. |
As soon as your startup does get big, it starts to make more sense to try and migrate to 'dumb' machines and save on infrastructure costs, especially if your business is low margin and your infrastructure costs are high.