I have not seen that claim until now. I always have been told the entire existence of AWS is because it’s way cheaper than self hosting and that makes sense to me
It’s never been cheaper. It’s so much easier to scale. It’s never been cheaper. Well, maybe at a very low usage rate. But, at scale, it’s never been cheaper.
Buying server hardware is a lot more difficult and with more lead time than just buying a computer. Plus you then have to build your server infrastructure out in a data center. It takes a lot of time, and specific logistical skills. AWS is far easier to scale your services then doing it yourself, especially if you have extremely high peaks that you have to serve.
If AWS was cheaper then hosting, they wouldn’t make money.
In SOME cases, it is cheaper than on prem.
If you need a lot of compute power occasionally, it can be cheaper.
If you actually scale up and down according to the load (which a lot of companies do not do), it might be cheaper.
But a large amount of companies don’t fall in those cases or don’t do it efficiently.
Some spend in a year the same amount they would have paid for on prem servers they would have kept 5 years or more.
Cloud providers offer other things like multi regional redundancy, which can be hard to achieve for smaller businesses.
Have you not been seeing it is in some cases. And companies are going back to on orem because it’s cheaper.
I have not seen that claim until now. I always have been told the entire existence of AWS is because it’s way cheaper than self hosting and that makes sense to me
It’s never been cheaper. It’s so much easier to scale. It’s never been cheaper. Well, maybe at a very low usage rate. But, at scale, it’s never been cheaper.
Buying server hardware is a lot more difficult and with more lead time than just buying a computer. Plus you then have to build your server infrastructure out in a data center. It takes a lot of time, and specific logistical skills. AWS is far easier to scale your services then doing it yourself, especially if you have extremely high peaks that you have to serve.
If AWS was cheaper then hosting, they wouldn’t make money.
In SOME cases, it is cheaper than on prem. If you need a lot of compute power occasionally, it can be cheaper. If you actually scale up and down according to the load (which a lot of companies do not do), it might be cheaper. But a large amount of companies don’t fall in those cases or don’t do it efficiently. Some spend in a year the same amount they would have paid for on prem servers they would have kept 5 years or more.
Cloud providers offer other things like multi regional redundancy, which can be hard to achieve for smaller businesses.
Thank you for the thoughtful response and not just downvoting like most others!