David Heinemeier Hansson (@dhh), co-founder of Basecamp, has reported progress in moving certain services out of the cloud, excluding S3. The transition has resulted in significant cost savings, with expenses reduced from $180,000 to under $80,000 per month. Overall, it is projected that more than one million dollars will be saved annually.
These cloud cost savings only take into account the reduced expenses from moving out of the cloud. The company has already invested approximately $500,000 in server equipment, which should be recouped within six months due to the current savings rate. Additionally, 37signals is planning to migrate additional systems, further reducing cloud costs by $2 million annually.
DHH has not specified which services were migrated, leading to these cost savings. However, expensive cloud services, such as databases, are mentioned. The company relies heavily on them, and in some cases, cloud usage may be more advantageous. Nevertheless, DHH emphasized that 37signals’ workloads are not significantly different from those encountered by typical companies.
As of 2022, 37signals’ cloud costs amount to $3.2 million. If the planned system migrations proceed as intended, there will still be systems remaining in the cloud, costing approximately $1.2 million per year.
TLDR: David Heinemeier Hansson reported substantial cost savings by moving certain services out of the cloud, resulting in monthly expenses being reduced from $180,000 to under $80,000. The company has already invested around $500,000 in server equipment, which is expected to be recouped within six months. Further cloud migration plans are projected to save an additional $2 million annually. Despite the savings, 37signals’ workloads are similar to those of other companies, indicating that cloud usage may still be advantageous in certain cases. The current cloud costs for 2022 amount to $3.2 million, with an estimated remaining expense of $1.2 million per year after system migrations.