So @lyft is paying $8m/mo to @AWS -- almost $100m/yr! Each ride costs $.14 in AWS rent. I keep hearing they could build their own DC & save. My early days at @Google cloud, heard the same from customers: "at scale, owning is cheaper". It wasn't - they all came around. Here's why:
Construction of a mid-sized Enterprise DC (just 5000sqft), at just "tier3" availability (3 9s) will cost around 40m. If you want 5 9s redundancy you will need 1-2 failovers, so 3x that. Incld racks, cooling, power, construction and land. Using a colo @Equinix will likely save 20%
But your DC costs will amortize over 10 years, correct? Yes. But there's more. Construction will take 12-24mos. For that time, company loses focus, hires non-core engg, vendors, and planners that understand bldg codes, fire safety, env rules, security, maintenance etc.
Then for 10 years you have: ongoing support, maintenance & repair, costs of power, heating/cooling, and biometric security of physical assets. Power bills alone run in xxMs that's why Google DCs are so remote and near Geo/hydro/solar power sources.
Moreover, you need to build for 10yrs out, not today, so you'll likely either keep building more and more, or overbuild capacity by 50-100%. Your initial estimate of 40m (x3) is now 60-80m (x3).
Next comes some of the most expensive stuff: fiber! Without gigabit connectivity you are toast. Building your own undersea cables will cost 100s of Ms, so you'll be beholden to buying dark fiber from tier1/2 telcos and pay exorbitant rates for intercontinental traffic.
Next comes the outages: no matter what you do, you'll never have hot-swappable everything managed by ultra fast robotic arms that replace hard drives in seconds. Your hw will fail at rack/server level at 2-3x the avg cloud. Massive costs to missing SLAs to the biz that you bear.
Finally comes certifications for PCI, for HIPAA, for Gov, bla bla bla. You'll coordinate with the consultants day and out and it'll take anywhere between 3-12 months to get most of your infra certified to run your biz the right way.
I ran a "TCO" analysis at Google to convince a large customer why GCP was better. The numbers were clear, but customer wasn't convinced. Went to Verizon cloud, which shut down, then HP cloud, which also got shut down. Went on-prem. Then came to us. Zynga story is well known too.
Few rare examples of this working in parts. Netflix & Dropbox. When companies reach "internet scale" & have to do a lot of customization on the stack, running own infra may make sense IFF you have the GMs to cover 2yrs CAPEX & plan upfront. Both firms still use the cloud a lot.
E.g. if you are +30% of the internet traffic (nflx) it doesn't make sense to pay rent to telcos any more and feed their margins. You have the volume and stable demand to justify ownership. For the rest, cloud is where they'll live and die.

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More from @MohapatraHemant

26 Apr
Oxygen vendors for Banglore (23 total). All are verified today. Please RT (multiple tweets / thread):

Contacts
1. Drug Controller Helpline 24x7
8951755722

2. Ganesh
9686198986

3. Manoj
9892356727

4. Ramesh
9844276111

5. Srikanth V
8861572742
6. Contact: Universal Air Products
Subhashish Guha Roy
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7. Company Name: Peenya Industrial Gases Pvt. Ltd.
Name: Ramesh
Number: 9686196642

8. Contact: Amogh Gases Pvt. Ltd.
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9. Contact: Bhuruka Gases Pvt. Ltd.
Mahesh
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10. Contact: Eureka Gases
Manjunath
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11. Contact: Galaxy Air Products
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12. Contact: Inox Air Products
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13. Contact: Lindie India Ltd.
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8 Mar
It was great to talk to my friend @balajis a few weeks ago. He is a quintessential futurist, living maybe 10-20 yrs in the future & has been right about so many things that sounded ridiculous back in the day. Genomics, Crypto, DeFi, Covid. Highlights in thread. #EE21 (1/11)
We asked Balaji - why is he the way he is? He responded by explaining that there are 2 types of CEOs - a COO type (those who ensure the trains run on time) & a CTO type (those who think & live in the future). While both have their merits, he gravitates towards the latter.
As the CTO type, he spoke of his interest in identifying powerful secular trends & behaviours e.g. rapid adoption of internet applications that are revolutionizing humanity - from meeting to mating! Being aware of these ‘curves’ helps in hypothesizing where we are headed.
Read 12 tweets
22 Jan
We @LightspeedIndia are thrilled to host Frank Slootman, CEO of @SnowflakeDB as the inaugural speaker for our #MastersOfSaaS fireside chat series w/ global SaaS leaders: RSVP@ shorturl.at/hDMZ8. As a fan, I've collected Frank's quotes ("Slootisms"? :-) for yrs; some favs👇:
Frank is an absolute master of speed. As the CEO of Data Domain (acqd:EMC), ServiceNow (NYSE:NOW), & Snowflake, Frank’s track record of execution + strategic vision is globally in the company of one. There are none like him. shorturl.at/avzL4. Img credit: @patrick_oshag
Frank on running fast and lean: Img credit: @Altimor
Read 14 tweets
6 Jan
Speed of execution is the moat inside which live all other moats. Speed is your best strategy. Speed is your strongest weapon. Speed has THE highest correlation to mammoth outcomes. Those who conflate speed w/ 'thoughtlessness' haven't seen world class execution @ speed. E.g.:
Many confuse speed w/ impatience. Impatience is your boss pinging you @ 9pm then calling @ 6am to check if a task is done. Speed is strategic. It is a permeated sense of urgency built w/ a shared belief that what you are doing is important & if you don’t do it, someone else will.
AMZN defines speed. Their 2015 SEC filing (shorturl.at/xDEU1) is a must-read: (1) deliberate irreversible decisions (~10%?) (2) expedite all else. Founding teams need to learn how to apply judgment w/ <70% of data (<50% for early stage cos). Move fast, “disagree & commit”.
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29 Dec 20
~8yrs ago (Dec’12) I got a job @Google. Those were still early days of cloud. I joined GCP @<150M ARR & left @~4B (excld GSuite). Learned from some of the smartest ppl in tech. But we also got a LOT wrong that took yrs to fix. Much of it now public, but here’s my ring-side view👇
By 2008, Google had everything going for it w.r.t. Cloud and we should’ve been the market leaders, but we were either too early to market or too late. What did we do wrong? (1) bad timing (2) worse productization & (3) worst GTM.
We were 1st to “containers” (lxc) & container management (Borg) - since '03/04. But Docker took LXC, added cluster management, & launched 1st. Mesosphere launched DCOS. A lot of chairs were thrown around re: google losing this early battle, though K8 won the war, eventually 👏
Read 14 tweets
7 Dec 20
SaaS growth investing is on 🔥 the last few quarters. If you are a SaaS founder in the market to raise a growth round, here’s a quick summary of what to expect & how to prepare for these conversations, based on chats we’ve had w/ a bunch of growth funds in US and SEA recently👇
Some highlights:
+ SaaS public mkt multiples are, for the 1st time, ahead of private mkts; we are seeing >20x NTM rev, 30-40x ARR, pretty regularly
+ Y/Y rev growth & mkt leadership valued a lot
+ 1st check DD down from 90d to 2wks!
+ Clear post-covid narrative v. imp to raise
Before the raise 1/2:
+ Educate the market on your long-term story; PR/AR, 3rd party sources talking you up, etc. You want data points others can search & find.
+ Get customers prepped to talk and offer a few up front once the funds are looking to dig in. Why?
Read 15 tweets

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