this post was submitted on 11 May 2024
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A week of downtime and all the servers were recovered only because the customer had a proper disaster recovery protocol and held backups somewhere else, otherwise Google deleted the backups too

Google cloud ceo says "it won't happen anymore", it's insane that there's the possibility of "instant delete everything"

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[–] [email protected] 47 points 6 months ago (5 children)

Tbh I do not understand why would a company keep their data on a service like Google Cloud

[–] [email protected] 44 points 6 months ago (2 children)

Because accountants mostly.

For large businesses, you essentially have two ways to spend money:

  • OPEX: "operational expenditure" - this is money that you send on an ongoing basis, things like rent, wages, the 3rd party cleaning company, cloud services etc. The expectation is that when you use OPEX, the money disappears off the books and you don't get a tangible thing back in return. Most departments will have an OPEX budget to spend for the year.
  • CAPEX: "capital expenditure" - buying physical stuff, things like buildings, stock, machinery and servers. When you buy a physical thing, it gets listed as an asset on the company accounts, usually being "worth" whatever you paid for it. The problem is that things tend to lose value over time (with the exception of property), so when you buy a thing the accountants will want to know a depreciation rate - how much value it will lose per year. For computer equipment, this is typically ~20%, being "worthless" in 5 years. Departments typically don't have a big CAPEX budget, and big purchases typically need to be approved by the company board.

This leaves companies in a slightly odd spot where from an accounting standpoint, it might look better on the books to spend $3 million/year on cloud stuff than $10 million every 5 years on servers

[–] [email protected] 24 points 6 months ago (1 children)

Excellent explanation, however, technically it does not constitute an "odd spot." Rather, it represents a "100% acceptable and evident position" as it brings benefits to all stakeholders, from accounting to the CEO. Moreover, it is noteworthy that investing in services or leasing arrangements increases expenditure, resulting in reduced tax liabilities due to lower reported profits. Compounding this, the prevailing high turnover rate among CEOs diminishes incentives for making significant long-term investments.

In certain instances, there is also plain corruption. This occurs when a supplier offering services such as computer and server leasing or software, as well as company car rentals, is owned by a friend or family member of a C-level executive.

[–] [email protected] 7 points 6 months ago (1 children)
[–] [email protected] 8 points 6 months ago* (last edited 6 months ago) (1 children)
[–] [email protected] 7 points 6 months ago

This guy corporates

[–] [email protected] 3 points 6 months ago

I read OPs comment as being a question about using a company with a reputation like Google rather than using a cloud service, but I could be wrong.

[–] [email protected] 34 points 6 months ago (7 children)

Money. It's a lot cheaper to let somebody else maintain your systems than to pay somebody to create and maintain your own, directly.

[–] [email protected] 26 points 6 months ago

Flexibility is a huge one too. Much easier to upscale / downscale.

[–] [email protected] 14 points 6 months ago (1 children)

If you are a small company then yes. But i would argue that for larger companies this doesn't hold true. If you have 200 employees you'll need an IT department either way. You need IT expertise either way. So having some people who know how to plan, implement and maintain physical hardware makes sense too.

There is a breaking point between economics of scale and the added efforts to coordinate between your company and the service provider plus paying that service providers overhead and profits.

[–] [email protected] 1 points 6 months ago (1 children)

If coordinating with service providers is hard for a firm, I would argue the cost effective answer isn't "let's do all this in house". Many big finance firms fall in this trap of thinking it's cheaper to build v buy, and that's how you get everyone building their own worse versions of everything. Whether your firm is good at the markets or kitchens or travel bookings, thinking you can efficiently in-source tech is a huge fallacy.

[–] [email protected] 3 points 6 months ago

it is not about it being hard. It simply creates effort to coordinate. And this effort needs to be considered. If you do things externally that means there is two PMs to pay, you need QMs on both sides, you need two legal/contract teams, you need to pay someone in procurement and someone in sales...

I agree with you that doing software inhouse when there is good options on the market is usually not a good idea. But for infrastructure i don't see there to be as much of an efficiency loss. Especially as you very much need experts on how to set things up in a cloud environment and you better look carefully at how many resources you need to not overpay huge amounts.

[–] [email protected] 4 points 6 months ago* (last edited 6 months ago) (1 children)

Except for the larger companies you still need a bunch of trained experts in house to manage everything.

[–] [email protected] 3 points 6 months ago

Yes, and they're the company's resources so they theoretically do what's best for the company as opposed to hoping Google or (godforbid Microsoft) does it.

The money gets paid either way, and if you have good people it's often the right call to keep it in house but inevitably somebody read a business book last year and wants to layoff all the IT people and let Google handle it "for savings". Later directors are amazed at how much money they're spending just to host and use the data they used to have in-house because they don't own anything anymore.

There are still benefits - cloud DevOps tools are usually pretty slick, and unless your company has built a bunch of those already or is good about doing it, it might still be worth it in terms of being able to change quickly. But it's still a version of the age old IT maxim to never own or build it yourself when you can pay someone a huge subscription and then sue them if you have to. I don't like it, but it's pretty much iron in the executive suite.

As a result, IT departments or companies spend much more than half of their time - totalling years or decades - moving from whatever they were using to whatever is supposed to be better. Almost all of that effort is barely break-even if not wasted. That's just the nature of the beast.

[–] [email protected] 3 points 6 months ago

It's absolutely not. If you are at any kind of scale whatsoever, your yearly spend will be a minimum of 2x at a cloud provider rather then creating and operating the same system locally including all the employees, contracts, etc.

[–] [email protected] 1 points 6 months ago

It very frequently is not.

[–] [email protected] 9 points 6 months ago

G Suite is a legitimate option for small-medium businesses. It's seen as the cheaper, simpler option versus Azure. I usually recommend it for nonprofits as they have a decent free option for 501c3 orgs.

[–] [email protected] 8 points 6 months ago

My company used to do this. Its cause we were incredibly stupid.

[–] [email protected] 4 points 6 months ago (1 children)

Money and Time – It's rather easier/cheaper for Organizations nowadays to outsource a part of infra to Cloud service providers.

[–] [email protected] 3 points 6 months ago

I meant Google Cloud, not cloud outsourcing itself