There is no doubt that the cloud is one of the most significant platform shifts in the history of computing. In Stacc, we have helped multiple clients launch their first product in the cloud. The value proposition is powerful: you get infrastructure available immediately, at just the scale needed for your project. However, A16Z argues that SaaS companies should move back from the cloud to their own data centers once they scale. The reason? If you’re operating at scale, the cost of the cloud can at least double your infrastructure bill compared to running your own data centers. Dropbox saved 75 Million USD over two years by moving some of their data in-house again. Maybe this is a trend we’ll see more of in Fintech as well?
Another trend indicating that this is a growing movement is venture-backed companies like Oxide
, which are planning to deliver hardware for running infrastructure at scale, directly targetting companies looking for other solutions.
A16Z - The Cost of Cloud, a Trillion Dollar Paradox. Link