IT/Software career thread: Invert binary trees for dollars.

Sheriff Cad

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Cloud computing's revenue model works like drug dealing. Get people hooked cheap, get them dependent, then ramp up the cost when you have set the hook and they cannot go back. This is going to be the gameplan with AI as well, with a side of surveillance state thrown in to sweeten the pot.
I get thats the plan, but why can't you go back?
 

TomServo

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I get thats the plan, but why can't you go back?
Curious. Before I expound. How familiar are you with large scale information systems, the underlying hardware needs to host it yourself versus the cloud.
 
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Sheriff Cad

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Curious. Before I expound. How familiar are you with large scale information systems, the underlying hardware needs to host it yourself versus the cloud.
I have a computer science degree, worked as a software engineer for 10 years before going to law school. I did C/C++/Java back in the day (I stopped in SW in 2007).

Almost all hardware was on site then, so where my knowledge gaps are is in AWS/Azure etc because that shit did not exist then.
 

TomServo

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So, at a very high level using my corp as an example. We currently have a hybrid of AWS running the majority of our enterprise apps, with on prem legacy mainframes and data stores, with a smattering of Azure. To move everything to AWS isn't just a turn key operation. Switching from on prem virtualization to AWS Virtualization is complex and rather lengthy. You are trying to replace apps while they still need to run in parallel. Let's say you reach the end goal of everything being in the cloud 100% native all, SaaS, 3rd party integrations are successful. You would have to maintain the power, hardware, staffing, and contracts for ISPs active for whatever length of time in order to cut back to your own data center at some point in the future. That is a massive spend. Which is why its all in and once you are in AWS or whatever you get raped 10 ways from sunday because now you're captured. I'll give a really small portion of our current opex bill. to record the API write events to a single S3 storage bucket for our data intelligence team in a calendar year, this is not including storage, just recording the API write events, not the API read events. is $1.6 million a year.
 
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Sheriff Cad

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So, at a very high level using my corp as an example. We currently have a hybrid of AWS running the majority of our enterprise apps, with on prem legacy mainframes and data stores, with a smattering of Azure. To move everything to AWS isn't just a turn key operation. Switching from on prem virtualization to AWS Virtualization is complex and rather lengthy. You are trying to replace apps while they still need to run in parallel. Let's say you reach the end goal of everything being in the cloud 100% native all, SaaS, 3rd party integrations are successful. You would have to maintain the power, hardware, staffing, and contracts for ISPs active for whatever length of time in order to cut back to your own data center at some point in the future. That is a massive spend. Which is why its all in and once you are in AWS or whatever you get raped 10 ways from sunday because now you're captured. I'll give a really small portion of our current opex bill. to record the API write events to a single S3 storage bucket for our data intelligence team in a calendar year, this is not including storage, just recording the API write events, not the API read events. is $1.6 million a year.
I understand all that but it still doesn't make sense why, if AWS/Azure results in these ridiculous bills, are the on-site bills even more ridiculous? If so then you're getting the cheapest deal already. If not, then why not pull it back on site, even if it costs more in the short term?

Is the issue that on-site costs less in the long term, but nobody wants to eat the short term spend?
 

Haus

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I get thats the plan, but why can't you go back?
Mostly it has to do with how microservices and cloud architecture are different.

When the first companies tried to "move to the cloud" they just took their existing servers, and mimicked them in VMs running in the various cloud providers (called "forklifting", or "lift and shift"). They quickly ended up costing more because the apps weren't designed to work with the modular microservice oriented nature of the cloud. They also couldn't easily dynamically scale for demand, which was supposed to be one of the major plusses to the cloud.

So they re-architected and redesigned how their apps were built to specifically leverage cloud infrastructure and architecture. Efficiency improved, performance improved, and lock in improved.

Real world example. I know a company who had a very successful product, completely written in house, built to drop in and install on any suitable Linux host you wanted to run in your data center to run it. Lean, Mean, and effective. But not scalable. They then decided that they had to "move to the cloud" to be scalable. So they made their software where it could be installed on any Linux VM in Azure,AWS, or GCP. Ran into some minor hitches but it managed, but still had scaling limitations. They then wanted to "modernize it" and retooled to take advantage of anything in GCP which Google offered. This locked them into just GCP (mostly due to heavy reliance on Big Query as a microservice). They added new features and a new UI and things were pretty good, and they could massively scale now. Except they had a handful list of features the old school stand alone version could do they STILL don't have on the GCP hosted cloud service, because of how GCP works. AND they can't make an on Prem option of the new product because there's no such thing as "On Prem Big Query" which they use for their database searching now....
 
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moonarchia

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I understand all that but it still doesn't make sense why, if AWS/Azure results in these ridiculous bills, are the on-site bills even more ridiculous? If so then you're getting the cheapest deal already. If not, then why not pull it back on site, even if it costs more in the short term?

Is the issue that on-site costs less in the long term, but nobody wants to eat the short term spend?
Costs and egos. The people who made that dogshit decision are still the ones in charge most of the time.
 

TJT

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To add to all of that companies have been selling off their metal for years. Land, hardware, facilities, and all.
 

Khane

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"You need to move your applications to be scalable and durable! The cloud is the answer" actually means "You need to move your applications into our software ecosystem, and we're pretending the hardware we use in our data centers is magical and different than yours and floats up in the sky!"

So you buy the double speak and move your applications onto their hardware and they have options available to you to do what Haus described as the "lift and shift". Your homegrown .NET applications can run just fine in their ecosystems after some initial set up pain and working with their onboarding engineers/architects. This whole time their team is talking up how much easier and faster everything is if you just migrate this code into their applications. They call it "scalable" when really all that means is these behemoths have the hardware and infrastructure in place to turn extra servers on for you whenever you give the green light with your wallet. It's immediate because it's already in place.

So you re-write your applications to use their native "microservices", APIs and SaaS products and now the problem isn't funding a new buildout in a data center that they don't own so you can suddenly call where your applications live "on prem" again. Its re-writing, probably, most of your applications almost entirely because they now exist on proprietary products you cannot migrate off their platforms in any way, shape or form. Your software is very literally fucking worthless outside of their ecosystem.

You once had an application you could package and sell to anyone, anywhere, running any OS. Now you have an application that runs on Microsoft's servers and will not work anywhere else, ever again.

This is a mild exaggeration, but that's basically the 50,000 foot view. You bought your kid a new swingset with all the hottest new add-ons, that every kid in the neighborhood has. It gets delivered and none of your tools are compatible with their proprietary screw heads, nuts and bolts. So you buy some new tools, build it, it works great so you start buying everything from that company. Now your whole house is full of gadgets and doo-dads and widgets that their tools work on! So you sell all your old tools. A few years go buy the sheen wears off the products start malfunctioning and you peel away the layers to find its all a grift. So you start fighting back with your wallet, but woops, none of your goddamn tools work on all the normie shit you want to buy.
 
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Haus

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"You need to move your applications to be scalable and durable! The cloud is the answer" actually means "You need to move your applications into our software ecosystem, and we're pretending the hardware we use in our data centers is magical and different than yours and floats up in the sky!"

So you buy the double speak and move your applications onto their hardware and they have options available to you to do what Haus described as the "lift and shift". Your homegrown .NET applications can run just fine in their ecosystems after some initial set up pain and working with their onboarding engineers/architects. This whole time their team is talking up how much easier and faster everything is if you just migrate this code into their applications. They call it "scalable" when really all that means is these behemoths have the hardware and infrastructure in place to turn extra servers on for you whenever you give the green light with your wallet. It's immediate because it's already in place.

So you re-write your applications to use their native "microservices", APIs and SaaS products and now the problem isn't funding a new buildout in a data center that they don't own so you can suddenly call where your applications live "on prem" again. Its re-writing, probably, most of your applications almost entirely because they now exist on proprietary products you cannot migrate off their platforms in any way, shape or form. Your software is very literally fucking worthless outside of their ecosystem.

You once had an application you could package and sell to anyone, anywhere, running any OS. Now you have an application that runs on Microsoft's servers and will not work anywhere else, ever again.

This is a mild exaggeration, but that's basically the 50,000 foot view. You bought your kid a new swingset with all the hottest new add-ons, that every kid in the neighborhood has. It gets delivered and none of your tools are compatible with their proprietary screw heads, nuts and bolts. So you buy some new tools, build it, it works great so you start buying everything from that company. Now your whole house is full of gadgets and doo-dads and widgets that their tools work on! So you sell all your old tools. A few years go buy the sheen wears off the products start malfunctioning and you peel away the layers to find its all a grift. So you start fighting back with your wallet, but woops, none of your goddamn tools work on all the normie shit you want to buy.
Yep... you nailed it essentially.

Or as an old VP of product at a former employer once told me :

Never build your product on someone else's platform.
 

TJT

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My company is relatively intelligent about this. Most of our customers exist in our on prem data centers. Our whales are on AWS simply because their needs are so far outside the parameters of the average customer.
 
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