Comment by klingoff

Comment by klingoff 3 days ago

7 replies

Price is supposed to cut in half every 3-4 years, if it isn't it is largely because cloud vendors can't bear to take less and hope there really is that much more volume of half as valuable computing to do.

The things they sell as an average CPU performance, etc are basically the average when their cloud began.

CapeTheory 3 days ago

> Price is supposed to cut in half every 3-4 years

Citation needed

> if it isn't it is largely because cloud vendors can't bear to take less

Even if we choose to accept your original premise, I think anti-competitive behaviour is much more likely than "can't bear to take less".

akira2501 3 days ago

> if it isn't it is largely because cloud vendors can't bear to take less

Cloud vendors have to buy products themselves. If their prices aren't changing then we have a market problem that extends beyond AWS.

This is probably why Graviton exists and provides cheaper VMs and Lambdas running on it.

> as an average CPU performance

CPU performance, in the cloud, is effectively free. You can overcommit and time share the CPU.

What you're paying for is memory.

  • klingoff 3 days ago

    > If their prices aren't changing then we have a market problem that extends beyond AWS.

    How do you get there? Even in markets without any specific lock in, the top brands charge prices that have nothing to do with raw costs.

    • akira2501 3 days ago

      > with raw costs.

      You've mistaken my point about "total cost of customer" for "raw cost of materials."

      The "top brands" probably do marketing. That costs. They probably have better supply chain availability. That costs. They probably have on site engineering support they can offer you. That all costs.

      What you're highlighting is the cost of CPUs has little to do with raw materials and with all this other attendant process. That has been true since a few short years after the product started existing.

MrDarcy 3 days ago

Moore’s law came to an end about a decade ago. Since the clouds began a vcpu then is largely the same as a vcpu today.

  • klingoff 3 days ago

    No, Moore's law is fine. If the CPU takes half the real estate and uses half the power but costs the same it is the same perversion of the market expectations of Moore's law as if you don't deliver twice as much in the same price.

    From Wikipedia:

    Some forecasters, including Gordon Moore,[122] predict that Moore's law will end by around 2025.[123][120][124] Although Moore's Law will reach a physical limit, some forecasters are optimistic about the continuation of technological progress in a variety of other areas, including new chip architectures, quantum computing, and AI and machine learning.[125][126] Nvidia CEO Jensen Huang declared Moore's law dead in 2022;[2] several days later, Intel CEO Pat Gelsinger countered with the opposite claim.[3]

    • lyu07282 3 days ago

      I think it's just because if you believe in economics it would suggest AWS must've lowered the price per vCPU since CPUs have become significantly more efficient in the last decade. Obviously that didn't happen...