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> As a reminder, east-west bandwidth is one of the highest expenses in a datacenter.

Is this correct?

In the post you linked here, Doug only claims that internal datacenter traffic is common, not expensive.

I may be misunderstanding something here since you also used the phrase "east-west bandwidth out of the datacenter", which sounds like an oxymoron to me. Sorry if that's the case 😅

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I totes meant to say north south. Brain fart, sorry. Fixed it. Thanks for correcting my stupid oversight

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Interesting to see real-world examples of how cloud compute cost-scaling is shifting the on-prem vs cloud debate + how google's vertical integration is actually providing cost-competitive advantages. It's becoming hard to imagine how commodity chip-makers like Intel are going to compete on the margin with each cloud hyperscaler offering their own custom domain-specific chip as a service or vertically integrating into their own offering.

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Performance, power, cooling take up way more of TCO than manufacturing costs. Intel could compete if they make something more efficient

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Oct 5, 2022·edited Oct 5, 2022

Are you sure it's transcoding that's too expensive? It could be the network.

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They have to skimp on transcoding, which means they have to send larger file sizes for similar quality video. I explain that

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