Response: Proposed server purchase for GitLab.com | GitLab
Gitlab is talking about heading into the private cloud after successfully building a cloud-ready application. The savings are substantial for a small, technology-rich company:
The cloud hosting for GitLab.com excluding GitLab CI is currently costing us about $200k per month. The capital needed for going to metal would be less than we pay for 1 quarter of hosting. The hosting facility costs look to be less than $10k per month. If you spread the capital costs over 2.5 years (10 quarters) it is 10x cheaper to host your own. (My emphasis)
This sounds about right but I don’t think this factors in head count for operating the physical infrastructure. Lets say that two extra FTEs at $15K per month are required, this still one third the cost of AWS. The reaility is $2.4MM is a substantial yearly budget for IT Infrastructure and for an application that already cloud-ready it would go a very long way
For a small company that is focussed on technology adding more headcount is good for capacity. In a team of ten people, adding 2 headcount increases diversity of thinking, ideas and approaches and can be important to spreading out the workload e. Continue reading
