this post was submitted on 25 Mar 2025
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I think you are dicounting how simple most cloud applications are - compute cores, bucket storage and virtual Networks make up the vast majority, with block storage and serverless compute probably making up a second to everything else being a distant third. I agree that there is specialization involved, but I also believe that regulation could go a long way to ensuring better access and making it possible for more competition. Right now, only a few companies have a monopoly on the datacenter infrastructure itself.
This is actually a lot more similar to power Utilities, which hides a vast and complex system of demand based generation that is hidden by ISOs. A regulatory system could work really well, and deliver much more and better service at lower prices. Otherwise we will see Cloud providers raising prices and offering deals more towards the large enterprises that can build billing support, which was the original complaint.
Not that I think we are close to that. Legislation around technology is woefully bad and behind in the US at least.
The thing is, people often switch providers due to poor network speeds, overprovisioned resources, and outdated hardware. Budget hosts use older hardware and whatnot to keep prices down, and premium hosts use newer hardware to justify a higher price.
If regulations come in that cap certain costs, it'll likely devolve into a race to the bottom per unit, with larger companies generally winning because they can get better deals on hardware due to hulk pricing. I imagine it could kill segmentation as well.
Maybe it would be okay. I'm just not very confident in my government to craft sensible policy that doesn't just benefit the largest lobbies, as in, the largest providers.