> You're paying for all of that whether it's the cloud or on-prem. The only real difference if you're a large company is whether you're paying another company's profit margin as well.
So, then why even provide the distinction of rent vs own if thats the case?
> you are paying Amazon enough to buy that much physical space, power, bandwidth, IT staff, etc.
And you're also sharing the costs with other people. Clearly FedEx is saving $400M/year while also funding Bezo's trips to space, no?
> But any Fortune 500 transitioning to the cloud is literally just taking their money and burning it, because the alleged cost savings of efficiencies of scale are being completely absorbed by the cloud provider's profit margins.
This is literally not the case without the details so stop speculating. Every F500 should (and probably is) be doing a rent vs own calculation and determining the TCO, and then making the decision from there. It's not unilaterally the case, it has to be assessed.
> Clearly FedEx is saving $400M/year while also funding Bezo's trips to space, no?
I wonder how much they'd save if they rebuilt their infrastructure with own DCs. There are huge savings in decommissioning mainframes, switching to free software and automating more. At the scale of Fedex, I don't think they'll spend much more on hardware and ops than AWS.
So, then why even provide the distinction of rent vs own if thats the case?
> you are paying Amazon enough to buy that much physical space, power, bandwidth, IT staff, etc.
And you're also sharing the costs with other people. Clearly FedEx is saving $400M/year while also funding Bezo's trips to space, no?
> But any Fortune 500 transitioning to the cloud is literally just taking their money and burning it, because the alleged cost savings of efficiencies of scale are being completely absorbed by the cloud provider's profit margins.
This is literally not the case without the details so stop speculating. Every F500 should (and probably is) be doing a rent vs own calculation and determining the TCO, and then making the decision from there. It's not unilaterally the case, it has to be assessed.