Published in Cloud

Cloud is getting too expensive

by on19 September 2023

Bringing things in-house is saving cash.

It is starting to look like the cloud companies are charging too much, and customers are voting with their feet.

37Signals SaaS project management outfit CTO David Heinemeier Hansson has been getting rather a lot of attention with a project he has been running to get his cloud in-house again.

Writing in his bog, Hansson said that the project has already saved the company $1 million.

Hansson used to spend $3.2 million a year on cloud computing, most of it at Amazon Web Services. His repatriation plan called for the company to pay $600,000 on eight meaty servers with 256 virtual CPUs and have them hosted at an outfit called Deft. He wanted to save $7 million over five years. In his Saturday post, Hansson wrote he now thinks he can find $10 million of savings in the same period.

"Our cloud spend is down by 60 per cent already... from around $180,000/month to less than $80,000," he wrote, qualifying that the number excludes the cost of Amazon Web Services’ Simple Storage Service. "That's a cool million dollars in savings at the yearly run rate, and we have another big drop coming in September before the remaining spend will petter out through the rest of the year," he said.

The CTO revealed that the 37 Signals ops team remains the same size even though it now tends its hardware, which costs "about half a million dollars.


Last modified on 19 September 2023
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