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Working at IT places in the late 2000s, it was still pretty common place for there to be a server rooms. Even for a large org with multiple sites 100s of kms a part, you could manage it with a pretty small team. And it is a lot easier to build resilient applications now than it was back then from what I remember.

Cloud costs are getting large enough that I know I’ve got one foot out the door and a long term plan to move back to having our own servers and spend the money we save on people. I can only see cloud getting even more expensive, not less.


There is currently a bit of an early shift back to physical infra. Some of this is driven by costs(1), some by geopolitical concerns, and some by performance. However, dealing with physical equipment does introduce a different set (old fashioned, but somewhat atrophied) set of skills and costs that companies need to deal with.

(1) It is shocking how much of a move to the cloud was driven by accountants wanting opex instead of capex, but are now concerned with actual cashflow and are thinking of going back. The cloud is really good at serving web content and storing gobs of data, but once you start wanting to crunch numbers or move that data, it gets expensive fast.

In some orgs the move to the cloud was driven by accountants. In my org it was driven by lawyers. With GDPR on the horizon and murmurs of other data privacy laws that might (but didn't) require data to be stored in that customer's jurisdiction, we needed to host in additional regions.

We had a couple rather large datacenters, but both were in the US. The only infrastructure we had in the EU was one small server closet. We had no hosting capacity in Brazil, China, etc. Multi-region availability drove us to the cloud - just not in the "high availability" sense of the term.

> I can only see cloud getting even more expensive, not less.

When you have three major hyperscalers competing for your dollars this is basically not true and not how markets work...unless they start colluding on prices.

We've already seen reduction in prices of web services costs across the three major providers due to this competitive nature.

And it’ll be so good and cheap that you’ll figure “hell, I could sell our excess compute resources for a fraction of AWS.” And then I’ll buy them, you’ll be the new cloud. And then more people will, and eventually this server infrastructure business will dwarf your actual business. And then some person in 10 years will complain about your IOPS pricing, and start their own server room.

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