David Heinemeier Hansson (@dhh) reported the results of 37signals’ total service migration out of the cloud, revealing a significant reduction in cloud expenses from $3.2 million per year to only $1.3 million per year due to retaining 10PB of storage in AWS S3.
The reason behind the company’s decision to move storage out later on is due to being locked into a 4-year contract with AWS set to expire next year. Afterward, they plan to utilize a dual-DC Pure Storage system of 18PB, which is estimated to cost around the same as cloud expenses for the entire year. It is anticipated that over a 5-year usage period, they will save $4 million. This year, AWS announced waiving data transfer fees in cases of customer migration, further cutting costs.
dhh emphasizes that although the cloud remains essential for heavy workloads, escalating cloud costs should prompt a reconsideration of whether self-owned servers are more cost-effective.
TLDR: 37signals reduced annual cloud expenses drastically by moving storage out and opting for a self-owned storage solution, saving millions in the process.
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