Cloud has failed (by becoming more expensive then on prem) so they're buying up everything in a last ditch effort to centralize compute. Really silly since all those GPUs will be obsolete soon.
Cloud has failed (by becoming more expensive then on prem) so they're buying up everything in a last ditch effort to centralize compute. Really silly since all those GPUs will be obsolete soon.
Cloud was always going to be more expensive than on prem, that wasn't what was being sold. Cloud sells that they are able to give you high availability across multiple regions without having to do an expensive capital investment. Amazon/Microsoft/Google is selling the talented engineering for getting these data centers working around the world at a high level of availability to companies. Most companies like recurring costs compared to capital expenditures. Companies also prefer lower head counts and paying for services. It is BETTER from an MBA pov to pay Amazon to run a Data center since they are experts than for you to run a data center as a finance company.
> since they are experts
This is the engineering perspective, not the finance perspective. As an engineer holding an MBA, I've made the argument countless times in BigCo to move from cloud deployments to on-prem. When you're a startup, you often simply don't have the cash on hand to make the capital expenditure to build out datacenter capacity, especially with an uncertain (but hopefully high) expected rate of growth. When you're a BigCo, the script flips; you have plenty of cash on hand and you want to improve overall profitability, which is done by using capital expenditures to reduce operating expenditures, i.e. funding datacenter build-outs to reduce cloud bills.
> experts
Companies can hire experts and can still out-source to colos if they prefer. This is a question of political will and risk analysis.
> Most companies like recurring costs compared to capital expenditures.
Actually big companies prefer capex to opex and cloud pushed them in the opposite direction of what they'd naturally prefer. But the other advantages you cite + hype overruled the liability of switching from onprem capex to opex.
>a last ditch effort to centralize compute.
I started with mainframes and I'm not going back.