[talk] Semi-OT: Andreessen Horowitz Public Cloud Costs

Charles Sprickman spork at bway.net
Thu Sep 8 00:40:16 EDT 2022


Who is this “Ike” guy? I keep looking for him in the list of folks in the IRC channel and he’s just not there...

> On Sep 7, 2022, at 10:49 PM, Peter Varga <pvarga at pvrg.net> wrote:
> 
> ... a few years ago, Ike held a very good presentation about the cost of Cloud computing, which inspired the question: when is the meltdown coming?  Is it now?
> 
> 
> On Wed, Sep 7, 2022, at 18:06, Pete Wright wrote:
>> This kinda old blog post from a16z landed in my inbox today which i
>> thought would be worth sharing:
>> https://a16z.com/2021/05/27/cost-of-cloud-paradox-market-cap-cloud-lifecycle-scale-growth-repatriation-optimization/
>> 
>> Seems like a pretty good analysis - or at least confirms many things I
>> suspected we true about how cloud spend can be outta control.
>> 
>> This quote caught my attention in particular:
>> A billion dollar private software company told us that their public
>> cloud spend amounted to 81% of COR, and that “cloud spend ranging from
>> 75 to 80% of cost of revenue was common among software companies”.
>> 
>> 
>> Anyway...maybe us old hardware and network hackers aren't totally out of
>> jobs just yet?
>> 
>> -pete
>> 
>> --
>> Pete Wright
>> pete at nomadlogic.org
>> @nomadlogicLA
>> 
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