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- CMDS 003: The Single-Provider Paradox
CMDS 003: The Single-Provider Paradox
Get your head out of the cloud
In the last two editions of this newsletter, we’ve been bathing in the bloated data stack problem. This week, we’re not getting out of the tub just yet. Let’s talk about why centralizing your data stack with one cloud provider, however tempting its “single solution, single bill” promise may be, is a bad idea in the long run. Add a little more warm water and settle in.
Let’s say you’ve chosen AWS to be your sole cloud provider. Now you have two options: you can use their homegrown tools, or you can look for other tools…on their marketplace. While the former solution may be simple, it’s not optimal. You’re resigning yourself to using AWS-grown Redshift over Snowflake, even though Snowflake is clearly the superior product. It’s only logical - you’re already running on AWS, so it would just create a headache to go outside the ecosystem. It’s like wanting to re-watch Succession when you’ve canceled all subscriptions but Netflix. You don’t have HBO anymore, so you’re stuck watching a crappy Netflix analog, which just can’t pull off the same tragicomic high wire act. Much less satisfying.
But what about if you go with the latter option and use the other tools on the AWS marketplace? Fine, but don’t come crying to me when you’re choosing among 500 dashboarding tools, as opposed to Amazon’s two, and you’re overwhelmed by the options. In this scenario, you simply have to re-watch Succession (can’t blame you), so you buy HBO through your Apple TV account. “It’s still one bill,” you tell yourself…Is that the sound of bloat I hear in the distance?
So those two simple options? Yeah, they’re both broken.
The next problem a monogamous AWS relationship may raise is a financial one. Amazon’s price may be acceptable now, but if they decide to raise fees for their cloud services, you’re faced with another two unpleasant, expensive choices: moving your entire stack onto a cheaper provider (who could easily do the exact same thing once you’ve signed), or just paying more for what you already have. To overdraw on our streaming metaphor, you’ve finally gotten HBO squared away and you’re happily watching the cringiest Kendall Roy moments…and then HBO raises its subscription fees. You can’t cancel, you’re too invested!
We all get it — choosing one cloud provider is both expensive and unexpectedly complex. To make matters worse, those issues are just the tip of the iceberg…Single-provider solutions can also introduce questionable office politics. Shadow IT teams - typically legacy teams with special relationships with leadership or acquired teams with less investment in following established rules - may seek ways around your AWS edict so they can continue to use their own preferred system. Other teams may join up and clamor for exceptions, too. As a leader, your temptation may be to grant these exemptions because you want to build a great product and don’t want to be a blocker…but if you do?? Now you’re a bloat enabler. You’ve missed all the signs that Tom and Greg are joining forces behind the scenes, and you’re losing control of Waystar Royco.
Sticking to a single cloud provider sounds like a reasonable solution to the data stack bloat problem, but it’s not. It creates more problems than it solves, and it invites your teams to go rogue. Don’t fall for the promise. Instead, learn how to adapt and navigate across various clouds. Tune in next week to figure out how to navigate the wild west of open source.
Ry’s Weekly Resources
Bill Gurly (All In Summit) - Regulatory Capture: While the title sounds super boring, this is probably one of the best talks I’ve heard in the last 5 years.
Somebody asked me about my favorite book about startup building. It's definitely The Hard Thing About Hard Things. Still not outdated despite being almost ten years old.
Lately, my best source for news about world events has been the All In podcast. All sides of the political spectrum are represented, and there is a legitimate debate. It's my favorite listen every weekend.