|>>|| No. 26637
>You mean I didn't take any notice of the bit where it said that software development, infrastructure and bandwidth was free? That's because it's bollocks, too.
It really isn't.
Let's break this down for the mouth-breathers in the room, such as >>26632, who for some inexplicable reason thought an SEC filing was somehow relevant to how fixed and variable costs work.
Let's say you have a product that takes around 25 man-years to build. How much does it cost you to build that for a few hundred users? Around £1m. How much does it cost you to build the same product for millions of users? Around £1m. How much extra did all those extra users cost? Nothing. What was the marginal cost of development? Zero.
Let's turn to the software infrastructure - tooling, pipelines, etc. Hopefully I shouldn't have to explain why the number of users has no bearing on the cost of building internal tools that they never interact with.
Bandwidth is counter-intuitive. You'd think that the more you use, the more it would cost you. In reality, large network operators work on a peering basis, where the cost of having other networks carry your traffic is to carry their traffic in your network in return. Once you scale to the point of having enough network traffic to warrant it, you'd be a mug not to join an exchange and get peering. Transfer fees go out the window and you just pay towards the exchange. Out with a variable cost, in with a fixed one.
In short, in terms of the business costs that are passed on to the consumer, the only thing that actually scales with usage is the resources supporting it. For a business selling cloud storage, that's ... well, storage. As has already been explained, when you're paying an extra fee for more storage, what you're paying for is in effect that storage and nothing else, regardless of whatever other features come with it, because providing those things are effectively free. From the perspective of the business, they're already paid for.
The main reason why these prices may seem a bit high to the man on the street is that in order to support your 1TB plan, the provider has to provision about 20-30 times that. The comparison to a 1TB hard disk is useless. To get the same sort of resilience that the likes of Amazon, Dropbox, Backblaze, etc. provide on your 1TB of storage, you're going to have to buy dozens of those drives.