> So why aren't there more entrants in the CPU cloud area? Because the market is...

Animats · on July 3, 2024

So are margins low?

galeaspablo · on July 3, 2024

Margins are high. 30-80%

Source: I run a cloud company and have plenty of friends in the space.

kortilla · on July 4, 2024

Software engineers are shockingly dumb when it comes to infra costs and will quickly push the technology arm of a company to jam everything in the cloud because it’s more convenient for them.

It’s not shocking at all that margins are that high when a team pushes to pay AWS $40k a month for a static workload that could run on two racks of servers.

galeaspablo · on July 4, 2024

“Dumb” could be reworded ;)

I would say “irrational when it comes to costs”. Not all developers ask questions such as:

Does paying 10K for convenience save me and my team more than 10k worth of time? Does this vendor make it easy to migrate out?

Of course I’m biased, because I like it better when the answers favor us, cloud vendors. But there are no catch all answers; as always, it depends.