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by bcoughlan
413 days ago
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Something an older and wiser programmer taught me, is to think of the infrastructure costs as a per-user cost. These numbers look enormous next to my bank balance, but if you save 500k per year to service 1 million users, it's nothing to your bottom line. Meanwhile there's the opportunity cost of moving. All of the people who put effort into this migration, who could otherwise be building something revenue-generating. I think that's why in many companies cloud costs are a problem, but never enough to make it high up the backlog. |
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At that point it was all “you will save the money because you will need such a smaller ops team”.
But once people actually did make the move and noticed that their ops teams didn’t get any smaller, then we started being gaslit into “well the cloud was never about saving money…it was about <fill in the blank>”.
Thenper user calculation is a terrible one. It essentially justifies any inefficiency as long as it’s not some arbitrary multiple of your user base, but inefficiencies add up.
The correct approach, that you even allude to, is to do a complete cost-benefit analysis. And the costs and benefits should include non dollar factors such as time, risk, control, reputational risk, data being available to 3rd parties, etc.
There’s no reason to divide your cost/benefit analysis by your user base at all. You can simply compare the absolute and total values against other potential initiatives and stack rank them based on their net expected benefit.