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Comment by emodendroket

6 years ago

If there were no economies of scale it certainly would seem strange that it could possibly be cheaper to rent computers from Amazon than to run your own data center.

Renting servers from Hetzner is a lot cheaper than using AWS. If you get your uplink figured out then running your own servers is also cheaper.

Operating AWS and the datacenters involves massive economies of scale. Writing the software that powers AWS - not so much.

  • Yes, but since most of us (I think, anyways) are working on Web-hosted software that stuff all matters. It also matters that an Amazon or Facebook has whole teams dedicated to developer tools, operations management, and so on.