Companies like AWS, Google, and MSFT have representatives that consult with YC founders to help them with engineering goals. I suppose to up-sell them on scaling with their platform.
But dear god, the XML! They've started making more and more stuff code-configurable though, so that's good.
And it's pretty expensive.
Now, if your competitor is on an open stack and on real computers they will eventually run rings around you because they get more control and lower costs. The initial boost you're experiencing will turn into a straightjacket with a hefty pricetag over the longer term.
Nice blanket statement there. How can you claim it's expensive when you have no idea what or how he uses it?
The most cost effective way as far as I can see is to hire a sysadmin on a freelance basis until you need one full time, own your own hardware (or lease it by the month until you can afford your own hardware) and pay flat rate for bandwidth. Anything else will sooner or later come to haunt you and then you will need to migrate to some new platform. At that point in time you will learn the true value of the words 'lock-in'.
Obviously it depends on what you're actually doing, but for a straightforward SaaS app (a few servers, a db server, a queue and a load balancer in a few datacentres around the world) one good sysadmin/devops guy costs far more than a set of AWS instances that essentially scale themselves.
Having dedicated people necessary for that 'control' is beyond the budget of the majority of startups.
The choice is definitely not between going for a cloud platform versus hiring a bunch of people full time. There are other options.
There is one specific case when I recommend AWS instead of dedicated servers and it's for customers who have widely varying traffic with predictable peaks. In that case having the flexibility afforded by cloud providers to increase the number of instances temporarily to deal with the peak makes sense.
I think there is a case for an open stack, but I think unless you pick a real dog of a platform good people can make it work well. It comes down to a "can I get good people for stack X?" as much as "Does stack X work or cost too much?"
Stackoverflow and Trello are always held up as the shining examples of how the Microsoft stack is able to hold its own. That's great, I even know people that insist on running their web servers on Apple hardware. Whatever floats your boat. But if you're running a competitive business, if you're going to be using a lot of CPUs and if you will eventually (or already) be faced with lean and mean competition then you are probably better off on an open stack.
Try to imagine Google, Amazon, Ebay, DropBox or AirBnB on the Microsoft platform. And note that two of the above are re-selling their linux based platforms to other users at a profit.
Btw stackoverflow uses plenty of CentOS, I guess licensing from RedHat was too expensive?
Microsoft aren't stupid - the costs they charge for Azure are largely competitive, and the benefits it provides are tangible.
Picking what technology will run your business is something that really needs to be done on a case by case basis, based on your knowledge and your business. Certainly I don't think it's desirable to make a permanent choice when you are still a startup.
Of course you'd use CentOS, unless you had need of the specific features that licensing it gave you.
We're definitely in agreement there. The main criterium is: use what you know how to use. So if you're comfortable using the MS stack then go for it, otherwise, probably better to avoid it.
So, would it be fair to say "So if you're comfortable using the Linux stack then go for it, otherwise, probably better to avoid it", or was that your parting jab against MS?
On top of that, SO's search feature is (IMHO) loads better than Reddit's.
Certainly, a silicon valley company of 10-20 employees will likely have costs of over $1000 a day - any software or hardware licensing will pale in comparison to this until the product is big.
Also, we don't have to worry about managing VMs at all so we don't generally think about those sorts of things except for a couple of very niche uses like our chat bot or QA testing VMs.
From another post by you: >Because I have fairly extensive insight into a very large number of companies and can see their license bills as well as their cloud bills if those are applicable.
Since you claim to have a lot of info on this can you give any, even one, real world example of you just said happening?
Otherwise I am going to call BS on it.
Perhaps you're starting something that is going to take down NewEgg.com ? You're clearly missing the forest for trees here. At work we run a large mix of Windows Servers, SQL servers, Linux, Drupal, MySQL, Moodle etc. running fairly traffic heavy and top ranking public health sites and all said our licensing and hosting costs are about 2% of our annual budget.
All I note is that MS thinks YC is important enough to designate a person to sway them to the MS stack and SAAS products, this is a tried and true strategy (get them while they're young) and it will likely cost you dearly in the long term if you aren't able to oversee the long term disadvantages of such a move. If you have a long history of using microsoft products and switching to open operating systems and stack components would mean lost time due to re-training then by all means stick to what you know.
It's funny how in one subthread here people are arguing that hosting and bandwidth are the major expenses for any start-up and now it's hosting and costs are 2%. In the end every situation is different and every situation has a different cost analysis for the workload envisioned. Seeing the guts of many companies has shown me that if you're doing something that requires large numbers of expensive licenses or metered bandwidth / cycles / storage then you're probably going to regret that choice at a later point.
When you take off, you can raise money to pay people to move you over anyway.