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Over the long-run, is cloud computing a waste of money? Some startups and other \u201casset lite\u201d businesses seem to think so. However, cloud computing for specific use cases, makes a lot of sense\u2014even over the long haul.<\/p>\n
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Over the long-run, is cloud computing a waste of money? Some startups and other \u201casset lite\u201d businesses seem to think so. However, cloud computing for specific use cases, makes a lot of sense\u2014even over the long haul.<\/p>\n
A Wired Magazine article<\/a> emphasizes how some Silicon Valley startups are migrating from public clouds to on-premises deployments. Yes, read that again. Cash poor startups are saying \u201cno\u201d to the public cloud.<\/p>\n On the whole this trend seems counter intuitive. That\u2019s because it\u2019s easy to see how capital disadvantaged startups would be enchanted with public cloud computing: little to no startup costs, no IT equipment to buy, no data centers to build, and no software licensing costs. Thus for startups, public cloud computing makes sense for all sorts of applications and it\u2019s easy to see why entrepreneurs would start\u2014and then stick with public clouds for the foreseeable future.<\/p>\n However, after an initial \u201ckick the tires\u201d experience, various venture capital sponsored firms are migrating away from public clouds.<\/p>\n The Wired article cites how some start-ups are leaving the public cloud for their own \u201cfleet of good old fashioned computers they could actually put their hands on.\u201d That\u2019s because, over the long run, it\u2019s generally more expensive to rent vs. buy computer resources. The article mentions how one tech start up \u201cdid the math\u201d and came up with internal annual costs of $120K for the servers they needed, vs. $320K in public cloud costs.<\/p>\n