Singapore software vendor says own hardware in colo costs $400 million less than cloud
Singaporean search engine optimisation tools vendor Ahrefs has claimed that keeping its infrastructure on-premises, rather than using Amazon Web Services, will save it $400 million over three years.by one of the company’s data centre operations execs, Efim Mirochnik, compared the cost of acquiring its fleet of 850 servers and running them in a co-located data centre with the cost of running a similar rig in Amazon Web Services.
Mirochnik calculated the cost per server per month is $1,500, including acquisition cost of the server.Mirochnik’s calculations included the cost of electricity, internet service providers charges, IP Transit costs, dark fibre charges, and the cost of operating internal network hardware. But the comparison isn’t quite apples to apples, because Mirochnik admitted “AWS doesn’t provide an EC2 instance with the number of cores we have.” His numbers are therefore based on “an EC2 configuration with half the cores and 1TB RAM. We then compared one Ahrefs server cost to the cost of two such EC2 instances.
But even with imprecise calculations, Mirochnik confidently asserted “Ahrefs wouldn’t be profitable, or even exist, if our products were 100% on AWS.”
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