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oriesdan | 5 years ago

I think the main reason they can afford pricing their services that high is because of peer pressure - probably itself the result of clever marketing, or that would be a really happy coincidence.

I've worked in many startups now, several of them where I was the first (and for a while, only) developer and had to decide on the infrastructure. Each time I was going with OVH, and each time the CEO was trying to push for moving to AWS instead, despite having no clue what the difference may be.

Their problem was that "startups are supposed to use AWS". They were having impostor syndrome. One would come to tell me every month or so how "all his friends use AWS, and they say it's very good". An other one was afraid what possible investors may say when he tells them we're not on AWS.

If people will pay overpriced services to be with the cool kids, why bother competing on price?

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ckdarby|5 years ago

Being on AWS, Azure or GPC isn't about the costs being pressured from another department at all.

The cost reflects the premium for integration into the other services.

It is after first employees bounce or the company outgrows that hustle hack everything together mentally that consultants like myself get hired and want to sob that some employee decided to board to OVH as a small startup especially if it is growing.

Every time I've dealt with this it is a disaster or things hanging together by a thread. Hanging together by a thread have sort of gotten better with kubernetes mostly keeping everything running just by turning anything back on when it dies or crashes. The thing is that only until last year did OVH offer managed k8s, those poor startups that will suffer from these choices.

OVH has it's place to be considered:

+40 engineering companies

High out going bandwidth (CDN, video streaming, etc.)

IO Latency requirements

Large enough scale of anything where the cost of AWS egress bandwidth is too costly

Radim|5 years ago

Your lack of punctuation and odd syntax makes me wonder, but if I understood your post correctly, you claim that building with AWS is somehow safer / more robust / more future proof than building with OVH? A technical judgement?

If so, I vehemently disagree. I've been a consultant for 10+ years too and seen 50+ companies from the inside, from startups to behemoths – including AWS itself.

Companies running a tight ship around resources were generally technically superior to those using AWS. "Hanging together by a thread" indeed, playing the AWS bingo of "use a flaky soup of 3-letter-acronym-services to cover technical inaptitude".

AFAIR the AWS versions of Spark and Elasticsearch were abysmal to the point of being unworkable. At least two years ago, maybe it's better now.

Cthulhu_|5 years ago

I've worked as a contractor for a CEO for two companies, in both he pushed for a full migration to AWS. Would not be surprised if he got a kickback from AWS.

Amazon is pushing AWS pretty hard in the C-level, I don't know if you've ever followed one of their certifications or landing pages, but they do their marketing really well.

Anyway, I do think a platform like App Engine / Beanstalk and other quick / easy / no setup deployment tools have a benefit, if you're not good at setting up servers.

WrtCdEvrydy|5 years ago

AWS allows you to shift your costs from CapEx to OpEx. Companies with low CapEx are valued higher since "theoretically" you could remove that bill by moving to another provider. Financial Engineering is just another part of software engineering and the cloud enables it.

throwaway894345|5 years ago

In my mind, one of the big (but seldomly discussed) pros for using AWS and especially their high-level services (especially WRT containers) is that they allow rank-and-file developers to do a lot more of the work that was traditionally considered 'ops'. This is advantageous because developer teams don't need to coordinate with a single ops team when they need something, which allows the whole organization to be more agile. Another advantage is that you don't have to hire and develop a high functioning ops competency in your business--you can outsource much of that to AWS and focus your time/resources on more valuable opportunities (in general, I wish the on-prem side of the debate would acknowledge opportunity costs in their talking points).

harryh|5 years ago

Startups don't win because they save 50% on hosting costs. They win because they move fast on product development. AWS make the latter much easier due to all of the additional tooling they provide.

lainga|5 years ago

If the constituent employees are trying to win in the classical sense, and not the pump-my-resume-and-bail sense.

KingOfCoders|5 years ago

CEO changes his opinion when money runs out and a new CFO comes in to fix the costs - at least from my experience.

srtjstjsj|5 years ago

If you need a CFO to look at your IT bill and cut costs, your problem is likely BS title inflation crowding out real work.