The recent discussion around 37signals' departure from AWS has sparked an interesting debate in the tech community about the true costs and benefits of cloud computing versus on-premises infrastructure. While the headline numbers are impressive, community members have raised important points about what might be missing from the calculation.
The Numbers Behind the Move
37signals reported saving almost $2M in their first clean year after moving away from AWS, with their cloud bill dropping from $3.2M to approximately $1.3M. The company invested $700,000 in Dell systems to replace their cloud infrastructure, which according to community insights, likely represents about two full racks of servers.
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| Analyzing the cost savings and investments associated with 37signals' transition from AWS to on-premises infrastructure |
The Hidden Considerations
Several key points emerged from the community discussion:
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Colocation Costs : As one community member pointed out, colocation costs for two full racks are relatively modest, estimated at around $10,000 per month in today's market. This suggests that the physical hosting costs aren't a major factor in the total cost of ownership.
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Personnel Costs : A significant point of contention raised in the comments is the absence of information about additional staffing costs for managing on-premises infrastructure. While 37signals claims their team size remained unchanged, this aspect deserves closer scrutiny for organizations considering similar moves.
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Workload Patterns : One particularly insightful comment highlighted how cloud computing might be oversold for steady-state, predictable workloads. This suggests that companies with stable, predictable computing needs might benefit more from on-premises solutions than those with variable workloads.
Future Plans and Implications
37signals still maintains some cloud presence, with $1.3M in AWS S3 storage costs until next summer. Their plan to replace this with Pure Storage systems in a dual datacenter configuration demonstrates the ongoing evolution of their infrastructure strategy.
Key Takeaways
The community discussion reveals that while cloud repatriation can lead to significant savings, the decision requires careful consideration of:
- Actual hardware requirements and costs
- Ongoing operational expenses
- Team expertise and management overhead
- Workload predictability and stability
This suggests that while 37signals' success story is impressive, organizations should conduct thorough analyses of their specific circumstances before making similar moves.
Note: All financial figures are based on publicly reported numbers from 37signals and community discussions.