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24
Jan

Amazon storage solutions have been a hotly debated issue recently at the Octabox water-coolers. My partner Adam believes that S3 is the best thing since sliced bread and I think its a lot hype but of no real value. The truth is probably somewhere in between.

Lets give Amazon’s service a head-to-head comparison with our hosting providers, ServInt:

Amazon:

  • Provides storage
  • Provides bandwidth
  • Charges per request (Is this a new model? never heard of that)
  • Sells books

ServInt:

  • Provides storage
  • Provides bandwidth
  • Provides application and database servers
  • Is a managed solution

I’ll focus on the storage and bandwidth, and consider the rest added value, starting by building several possible real-world scenarios

1. Small art gallery:
We’ll start with a small but not obscure art gallery. It stores about 12Gb of images and videos and transfer is about 200Gb.

At ServInt, the only choice is the essentials package (a bit of an overkill, but the cheapest solution ServInt has to offer). Monthly charge is fixed at 50$, barring any unforeseen sudden increase in bandwidth or storage. ServInt actually allows accounts to go over the limits, and charges for the difference (0.25$ per 1Gb bandwidth, 3$ per 1Gb storage).

At Amazon, the calculation is relatively simple:
(12 Gb storage x 0.15$) + (200 Gb traffic download x 0.18$)
+ (25 Gb traffic upload x 0.10$) + (800,000 GET requests x 0.01$ per 1000)
+ (100,000 PUT requests x 0.01$ per 1000) = 49$ and change.

The amazon charge is composed of ~80% bandwidth and ~19% requests.

* Get requests were derived from dividing the download traffic by the average high-resolution image size of 250Kb. PUT requests are based on upload traffic divided by the same image size.

Round One: Draw

2. The upstart video sharing community:
Those have been popping like flies recently. Supposing its marginally successful, storage is about 30Gb and transfer is about 800Gb. This time we’ll be taking the VSPro Deuce account at ServInt, which is fixed at 150$ per. The calculation for Amazon is the same as before, and it comes to 160$ and change.

The amazon charge is composed of ~95% bandwidth and ~2% requests.

* This time Get requests were based on the traffic divided by the average web-encoded movie size - about 3Mb.

Round Two: Advantage, ServInt

3. The up and coming social network:
XYZ Social network has been doing recently well, and has some plenty of users uploading and sharing photos and so forth, marking its current needs at 220Gb storage and 3,000Gb bandwidth. It requires a dedicated server, such as the simplest enterprise solution by ServInt, which cloaks at 500$ per. Again, calculating for Amazon we come to 1,021$ and change.

The amazon charge is composed of ~57% bandwidth and ~40% requests.

* This time Amazon exploded since I’ve put average user uploaded image size at 80kb (including thumbnails), increasing requests by a large factor over previous cases.

Round Three: ServInt by TKO

Excel style -

Amazon Vs. ServInt graph

Amazon Vs. ServInt figures

So what does this all mean?

First of all, it’s interesting to note that most of Amazon’s costs are bandwidth related. The other significant cost factor is the amount of requests - which becomes most pronounced for low size files, high transfer sites. In fact, storage costs on average comprised only 3.2% of the total costs!

Those figures support my view that Amazon is an expensive alternative to standard web hosting. Lets not forget, that the hosting packages mentioned actually include a hosting server, providing the backend to run the site. The only path in which Amazon seems like a viable alternative, considering their reputation for speed and reliability might be the heavier media types, such as video and audio streams.

There are some who would obviously dispute my conclusions, such as SmugBlog (marketing ploy?) and actual small blogs (not to mention my partner in crime, Adam)

23
Jan

Sun Buys Octabox! … or not

by Eran Galperin on 4:35 am | 0 Comments
Categories: Hosting

Well basically not. However, we did get invited to hear about their Startup Essentials program, a promotion plan aimed at startups. The meeting took place at their local (Re: Israel) branch, which is located in a giant building complex in the commercial sector of Herzelia (Pituach). Calling it a building complex is actually quite literal - as we actually needed a map to find the right building, another mini-guide to get to the right floor, security doors bypass, visitors permit, auto-guiding laser turrets shutdown code… complex.

We sat down with a marketing executive in a ’small’ meeting room. I’ll comment now that despite the difficulty of finding their office, it’s pretty well stocked with fresh fruit in the lounge, big showoff SUN servers near the reception and so forth. The ’small’ meeting room was no different. I guess this is what being enterprise is all about :P

We exchanged business cards and introduced ourselves and what we do at a record time of 20 seconds (we are getting better at this). We then got to hear a 10 minute tirade of what SUN is in ‘general’, only it wasn’t very general at all with the marketing guy apparently going on in great detail about the architecture of their latest SPARC chipset and other technical jargon that was pretty difficult for me to swallow. I mean, I’m as technical as the next guy (by the way, I’m CTO here at Octabox ;)) but when someone tells you “Where were you 8 years ago? We at SUN were just coming with this great chipset / server/ OS thingamabob… “, you have to wonder. Oh, and 8 years ago I just finished high-school… Talk about a generation gap.

Ok, so what does SUN have to do with startups? A quick recap: In the .com bubble period, SUN grew tremendously by selling servers and services to startups who had a lot of VC money to spend around. The bubble proceeded to blow up, startups stopped buying SUN servers, SUN decided that startups aren’t good money and went on to provide servers and services to enterprise corporations. All is well, until youtube sells for 1.65$ billion to google, and shockingly enough, SUN has no foothold in this deal.
Are you shocked? Well I certainly wasn’t but apparently SUN executives process such worldly events differently. This great disaster prompted SUN to once again try to appeal to small startups, in the hopes that the next youtube will be using SUN servers and Solaris OS.

I have to say when I heard this story all I thought was how contradictory SUN’s attitude is to ours. Our motto is “Helping small businesses” - We think the power is with the people, so to speak, not with the money. Also, by cultivating small businesses and giving them great service you create loyalty - which will pay itself back when those small businesses grow to become big businesses. I could look at my partner’s face and see he was thinking the same thing.

So SUN now wants startups such as ourselves to see the light and bask in their obviously superior products and services. Awesome. So what can SUN offer us? Two things - Servers and Server OS. This all sounds great if we were in the server startup business. And while I’ve heard good things about both their OS and their servers, at the end of the day I rather leave such decisions to professionals - our hosting company. As long as I have the performance I need and the scalability options I want, it really doesn’t matter to me whether my LAMP based service is running on Xeon based redhat server or SPARC based Solaris server.
By the way, we love our hosting providers servint. Over the years we had several unusual requests and they never failed to provide. Their service and support are top notch, and other hosing providers should take heed - You are in the service business, not the serving business. Also, we just got a small bandwidth and storage bonus to our account for free, which appears to be an annual giveaway from servint. Again, service!

I have been doing some research recently on scaling and server performance, reading some interesting stuff about wikipedia’s setup and about comparisons between SUN and Intel based servers, which is all very informative - And this just reinforces my belief that when we have the funds, we will hire an expert to handle our scalability issues instead of trying to do everything ourselves.

01
Jun

Web hosting for you and me

by Adam Benayoun on 7:28 pm | 3 Comments
Categories: Hosting

Hosting companies are like fortune cookies: “you never really know what you’re going to get”

I remember the time I uploaded my first homepage to the internet, it was with Geocities, the service was free and built a community around itself, but overall, it was just the MySpace web 1.0 (Think of a huge collection of horrible designed WebPages grouped together under one domain but without the web 2.0 features).

Through the years, while I gained experience and felt I had enough of the host-your-site-while-we-make-money-with-annoying-popups model, I began to deal with paid hosting packages. Prices ranging from 3.99$ to 20$ a month, experiencing the services of small resellers and larger resellers that call themselves “web hosting companies” and have a template they bought for 40$ from template sites.

My main problem with them apart from the poor performance (lot of them were overselling their servers), was the slow service and response times since resellers act as an additional contact point between you and the hosting provider.
(more…)