Cloud data centers offer low variance in engineering. BofA’s on-prem design, by contrast, is high variance. The thing with variance is that you have to wait for it to kick in. In markets, lots of people make profitable bets, but look like fools when variance catches up to them.
Lots of replies to this saying that it’s cheaper to run your own data centers at scale than using AWS/GCP/Azure. There’s nothing more expensive than saving money by running your own data centers.https://twitter.com/zackkanter/status/1186491942848253952 …
-
-
-
Can you give an example of variance in this context?
- 1 more reply
New conversation -
-
-
I dunno, maybe writing your own database or programming language might compete with running your own data centers.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Though I agree with you in principle (today's cloud is cheap!), there are times in which taking a product/service in-house can pay dividends. Apple has done this with its chips for the iPhone and iPad, and Tesla has done this with its chips for FSD.
-
In BofA's case, if they were able to build out a private cloud that was either 1) more efficient in processing the types of tasks that BofA often requires, or 2) better able to tie-in with their in-house legacy infrastructure, I think private cloud could make sense for them.
End of conversation
New conversation -
-
-
What is the longterm cost Boa will suffer? It is a lack of innovation as they are unable to match the R&D that MS and AMZ can provide? Or something else like security?
-
They aren't necessarily in competition with MS and AMZ on R&D. It's more the R&D they miss out on for their own customer facing products by focusing on building a data center.
- 1 more reply
New conversation -
-
-
Clearly they have not factored in “opportunity cost”. What are they not building by opting to build (& maintain) a data center?
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Your second tweet in the subtweet about velocity is spot on. Speed fosters learning. Fear/savings based strategies don’t help in the long run.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
But whyyyyyy ... some of us are lay people who would like to better understand the implications but don’t understand that which seems quite obvious to you
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.