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#cloud#lidl#aws#service#using#more#don#actually#services#stackit

Discussion (94 Comments)Read Original on HackerNews

retiredabout 3 hours ago
Years ago I was making the case that instead of digging ourselves into the Amazon eco-system with S3 storage, EC2 instances, DynamoDB and various other Amazon specific cloud products... we should just host virtual machines and have everything in there using open source products.

People looked at me like they saw water burning but that would have made the dependency on the US a lot easier to sever. Just move the VM's.

kevin_nisbetabout 1 hour ago
I've operated at companies using both models, and have observed similar reactions to suggestions of using the cloud.

To me it's like anything else in engineering, are the costs, risks, and benefits fully understood, and worth the tradeoff in the particular context.

I worked for a startup doing internet of things, the consumer would buy a device and get lifetime service baked in. And that company was a step further, just renting space in a colo was incredibly cost efficient, which supported the sales model and competitive landscape of that product. But it was also very costly to attention, one of the most valuable resources. But it can also get costly in non-intuitive ways, an example that comes to mind is we started to get interviews where a generation of candidates no longer had experience with metal, it was a foreign world to them.

With more experience, I find it's really the costs that get severely underestimated, both for and against the suggestion.

ghaff33 minutes ago
Especially in larger organizations, it's easy to lose track of all the distributed soft costs that DIY can bring (and all the bus factors that may be involved). There are lots of people that kinda want to get paid and get benefits and which require some level of management structure.

At some point, you have people (on here and elsewhere) questioning what all these people in an organization do. PART of the answer is that they're doing internal work that could have been outsourced in various ways.

lmf4lolabout 1 hour ago
I am running my startup out of a self build GPU server from our office with a backup to the cloud. I only pay for the IP address as electricity is included in the rent. If the startup fails, Ill have thousand other potential use case for it and in the worst case, it will make for a awesome gaming machine.

The machine is a beast and I can serve a lot of users with it. In fact, and quite funnily, I already serve much more users with it than a lot of my older clients do with their software running on expensive k8s setup because „scale“ :-)

And last, but not least, I had a lot of fun building it. Its just nice to hear that thing humming away in the corner.

xfactorialabout 3 hours ago
The whole business model is around “Optimization through custom tools”.

We can go with your idea, sure: a few months in, an Account Manager from the cloud provider shows up and says your bill could be reduced by 50% if you just adopt some changes, using their custom, super optimized tools (“minor changes” will be the mantra).

And now you have your own company looking back to you on how can they get those savings, people who don’t understand what a VM is and cannot differentiate salesforce from an elastic container, as everything is “cloud”, but heard “50% off”.

walrus01about 3 hours ago
Preventing this from happening requires a clued-in CTO and equivalent senior level leadership who can defend against such 'attack' methods and knows the difference between, for instance, paying a monthly recurring cost to host a Linux/KVM virtual machine and paying for some totally 'cloud' SaAs.

Further, it needs people in decision making roles who understand and value the strategic differences between having an infrastructure concept that is trapped in one provider's proprietary software tooling ecosystem (aws, azure, etc), vs things built on open standards that are portable.

palmoteaabout 1 hour ago
> Preventing this from happening requires a clued-in CTO and equivalent senior level leadership who can defend against such 'attack' methods and knows the difference between, for instance, paying a monthly recurring cost to host a Linux/KVM virtual machine and paying for some totally 'cloud' SaAs.

And the reality is eventually you'll get a clueless one, and everything will revert to the mean.

And the mean is heavily influenced by marketing propaganda.

RobotToasterabout 2 hours ago
Do people actually take claims like that from glorified salesmen seriously?

If a car salesman told me I could save 50% of my fuel bill from driving their special car a certain way I'd laugh at them.

throwaw12about 2 hours ago
You are missing the timeline factor here.

2016 - lets use EC2, its just VM, we can move off

2018 - I see you are hosting your own PostgreSQL in EC2, you can use our managed solution

2020 - you are already using 18 our services (note, at this point you might still be using non-vendor products, like VMs, managed DB, and so on), why not use our IAM instead of rolling out your own auth.

2024 - you are now deeply locked, lets add more lock-in, why don't you use this tool to optimize your costs (welcome DynamoDB)

At this point, no one would ever question next tool from salesman. Because engineers see that company doesnt have strategy to move to another cloud, why should they reject this new tool?

also consider the people who are involved, a lot of times after 2 years you have totally new people in your team, they won't have context and constraints you had in the past when deciding to buy "just VM", they see it as "we already use AWS"

green7eaabout 1 hour ago
I had many conversations with a former boss about the Azure sales team. They would come in, say they can do it cheaper, simpler and better — he was immediately convinced.

I would do a calculation based on their public price plan and come up with a 5-10x price compared to the bare metal OVH solution that perfectly fit our use case. I would then ask the sales team where I made a mistake in my calculation and hear nothing back.

A few months later, they would come back with the same pitch and the whole process would repeat...

pvtmert13 minutes ago
AWS has been (blatantly) using Microsoft method of making their way in. Redis, Elasticsearch, whatnot, all follow the same procedure: 1. Here is a managed service. 2. Here is a fork of the managed service where we manage the server (you don't see) with 15% off in price/credits. Easier backups with clicks etc. 3. We are dropping support of managed-X, move to our fork. 4. Due to the market conditions, our forked service is now 50% more expensive. 5. Ah also, you cannot export/download your backups because they are in proprietary format. 6. Locked-in.
pipersweabout 2 hours ago
They're probably not wrong, if they're talking about hypermiling a Prius
thebruce87mabout 1 hour ago
I save 75% on electricity vs diesel
SpicyLemonZestabout 2 hours ago
You'd be wrong to laugh at them, because different cars of the same general size can indeed vary 50% or more in fuel efficiency. It's fair to be skeptical of promises of huge savings, and question why your counterparty would benefit from giving you those savings, but sometimes there's a good reason.
walrus01about 2 hours ago
> Do people actually take claims like that from glorified salesmen seriously?

People who know the tech, no

Non-technical middle management types, yes. It produces revenue when done aggressively enough, google "solarwinds sales people" for many anecdotal examples of extreme persistence. Not that I agree with it.

BadBadJellyBeanabout 2 hours ago
I prefer not using managed services but I kind of understand the appeal. Instead of paying several engineers, that you have to vet first, to configure and maintain the services adjacent to your product you can just pay AWS or Azure or someone else to maintain the service. Then you can concentrate your whole manpower on your product. In case the service goes down you can blame someone else and maybe even recover some money. On the other hand it of course makes you dependent on the provider.
lelanthranabout 1 hour ago
> Instead of paying several engineers, that you have to vet first, to configure and maintain the services adjacent to your product you can just pay AWS or Azure or someone else to maintain the service.

Your engineers who all have to possess AWS or similar certs before you hire them, work for free?

A move off VPS to managed services doesn't reduce your headcount or labour costs.

mulmenabout 2 hours ago
What you’re describing is outsourcing. It’s still possible with on-prem or cloud VMs. You just hire a contractor provide those services.
actionfromafarabout 1 hour ago
In my experience it doesn’t take long until you use such complex offerings from the cloud vendors, you need those ops engineers anyways. Just with slightly different skillsets.
PaulKeebleabout 2 hours ago
There was a period when development and system adminstrators were really concerned about vendor lock in and would choose on the basis of the ease of moving to a different platform, Java and J2EE was clearly based on this mindset. I have always found it odd people have been willing to adopt AWS with no apparent easy route off given its price.
pjmlpabout 1 hour ago
Still is, nowadays the standard is Jakarta EE 11, alongside Microprofile, which Spring also uses parts of.
bell-cot22 minutes ago
> I have always found it odd people have been willing to adopt AWS ...

It's the new "Nobody ever got fired for buying IBM".

stuaxoabout 1 hour ago
S3 has become a standard outside of AWS but everything else can be done with open tools except IAM which is always a pain anyway.
petterroeaabout 1 hour ago
For those who grew up with aws and other cloud providers this is the only reality they know of, after all.
tt24about 2 hours ago
This is great, your suggestion to replace s3 and ddb is to run some VMs?

I don’t blame people for being skeptical

filleduchaosabout 1 hour ago
Projects like Ceph and Minio have existed for years, though?

Beyond that, I just don't understand your point of view at all. Do people unironically think there is some super special dark magic being done in the bowels of Amazon, as opposed to just...code that runs on (virtual and physical) machines? The open source community yielded Linux but it's just sooo impossible for it to yield an object storage service? What a strangely shackled view of the world.

ApolloFortyNineabout 2 hours ago
Yea, op just handwaved away all scalability. Guessing their response would be 'launch more vms'.
actionfromafarabout 1 hour ago
Scalability is great, when you need it. Most companies don’t need it.
lelanthranabout 1 hour ago
> This is great, your suggestion to replace s3 and ddb is to run some VMs?

Well... yes?

What do you think the AWS S3 and DDB is running on? Fairy dust?

tt2422 minutes ago
No it’s using an army of extremely well paid engineers, something I guarantee the parent comment has no access to
baqabout 2 hours ago
s3 is kinda hard to replace if you actually use it; the rest is manageable with varying levels of pain
RobRiveraabout 1 hour ago
That's genuinely my baseline, then I ask 'why do we want to manage this dependency?'

I can appreciate the desire to close gaps on expertise deficiency and make a vendor responsible, but the whole schtick of 'outsource everything and focus on your business for advantage' always rang to me as just an excuse to give our money to vendors.

Its almost as if the whole case for vertical integration is just taken as a wash

kyproabout 2 hours ago
This would only work if you have a solid devops team imo. AWS makes it extremely easy to deploy and scale infra.

Another advantage of AWS is permission management, automatic RDS snapshots, cloudwatch comes out of the box...

You can do everything with VMs, but in practise it's probably much harder.

holodukeabout 1 hour ago
With opsAI using Claude it's becoming easier again.
nine_kabout 3 hours ago
Most cloud VMs have network-attached storage working through a billing layer, and its IOPS numbers are pathetic. This makes running your own DB in a cloud VM much less reasonable. Now you can use local NVMe, but you still have to set up your own failover.

The original promise of the cloud is "you pay us less than you pay your sysadmins", which is not entirely unreasonable, especially at early stages.

Of course running on bare metal from Europe's own Hetzner is even more cost-efficient, if you already have a lot of sysadmin chops.

jbverschoorabout 2 hours ago
Nah.. Amazon started with “ephimeral” compute. That was the whole thing why you needed another storage layer

Unlike most VPSes

MaKey18 minutes ago
I've got experience with the LIDL cloud aka STACKIT and work for a STACKIT partner. Just drop me a message if you are interested. Two fun solutions implemented (fully automated via Terraform):

Site-to-Site VPN between STACKIT and Azure using a LibreSwan VM and an Azure VPN Gateway

FortiGate HA cluster in STACKIT - not a single ICMP packet got lost during failover

tjwebbnorfolkabout 1 hour ago
> will sign a major contract tomorrow

Ok so nothing has actually happened. These migrations are difficult and expensive, and often fail. It will be interesting to see an update in 5 years on how this went.

petervandijck14 minutes ago
I just love that it’s Lidl, of all brands
k__12 minutes ago
European central bank will probably go for Aldi.
helsinkiandrewabout 1 hour ago
Here’s the service:

https://stackit.com/en

pier25about 3 hours ago
Wait... Lidl has a cloud service now?
kodama-lensabout 3 hours ago
Yeah, kind of. Lidl and Kaufland is owned by the Schwarz Group. They have been busy replicating the AWS orgin story. Their cloud is called StackIT. I've worked with them. Still some room to grow but a solid foundation. I like that competition is back on
martijnvdsabout 2 hours ago
Is it fully custom, or are they using a flavor of OpenStack or similar?
MaKey25 minutes ago
They have their own API but under the hood it's OpenStack.
storusabout 3 hours ago
Schwarz seems to be obsessed with how Amazon (book seller) created AWS and they are trying to do the same... with 5 people. Also Aleph Alpha + Cohere is a Lidl work as the current CEO of the former led Lidl digital division.
wasmitnetzen39 minutes ago
Lidl famously blew 500M on a failed SAP project, so they're understandably a bit into running things themselves.

https://news.ycombinator.com/item?id=17541092

scandoxabout 3 hours ago
So the 7,500 they say they're employing...is not true?
ivan_gammelabout 2 hours ago
Schwarz Gruppe includes Schwarz Digits, which include StackIT. 7500 is the number of employees at Digits, which also includes online marketplaces like Kaufland e-commerce, so definitely not all of them work on the sovereign cloud.
ambicapterabout 3 hours ago
Lidl is a grocery store chain, I'm assuming GP was talking about the amount of people actually working on the cloud.
walthamstowabout 3 hours ago
The things you can find in the middle aisle!
apparaturabout 3 hours ago
Sure and it's on SALE right now if you have the customer loyalty card!
lifestyleguruabout 1 hour ago
> Lidl has a cloud service now?

Yes, when you pay you have to print a receipt with QR code, and then have to scan it to log out.

tcp_handshakerabout 2 hours ago
Its terrible...just go and try to open an account...it broken from the start

https://accounts.stackit.cloud/ui/login/user

janmarsalabout 2 hours ago
You need to download the lidl+ app. great value
dethos43 minutes ago
Makes sense. I never worked with this particular provider, but I must say that for many (many) use cases, Europe has very capable providers, and the big US players are not necessarily the best choices.
sourcecodeplzabout 1 hour ago
Isn't this how AWS also started? They built internal devops tools for them that were so good and expandable that they decided to give others access to them.
Havoc22 minutes ago
Yeah, though in this case the selling point is less about scale and more about data sovereignty. German companies are pretty touchy about storing data cross borders
tomschwihaabout 2 hours ago
The title is heavy clickbait. To say I just bought a Porsche when it was actually a Volkswagen is also wrong. Just because they belong to the same owner doesn't make it the same brand.
croesabout 2 hours ago
It’s actually the other way around. Porsche is a Volkswagen but a Volkswagen isn’t necessarily a Porsche.

VW bought Porsche

AndroTuxabout 2 hours ago
Yes, that's what they're saying. LIDL doesn't have a cloud. The Schwarz Group does.
fodkodraszabout 1 hour ago
Too bad, a LIDL branded cloud would be something really well marketable. Cloudside services (a'la Parkside)... or something along these lines.
manquerabout 1 hour ago
Kinda, VW indeed owns Porche AG 100% today.

However it was more complicated than that. Porche owned 50+% of Volkswagen at the time of Volkswagen buying them. Porche got over extended and leveraged buying Volkswagen . The management family is closely connected since the start and at the time in early 2010s 20% government ownership rule was just getting stuck down by European courts .

ck45about 1 hour ago
Well, it's more difficult. The original Volkswagen was designed by Ferdinand Porsche.
MiinusMiinusabout 1 hour ago
I'm so happy that companies are ditching the big tech. Not enough fast enough imo.
holodukeabout 1 hour ago
And Germany is better? It's government is almost a copy of the 10 commandments of war propoganda. I don't know but it seems to be a dangerous place to put your stuff.
strangegecko36 minutes ago
Expand?

German government is certainly slow and overly limited by bureaucracy, but dangerous?

Who are you comparing to?

vrganj41 minutes ago
The last war Germany started famously ended 80 years ago.

The last war the US started is still ongoing and was started by them a few weeks ago.

speedgooseabout 2 hours ago
Yes I guess banks don’t mind the high prices of Lidl’s cloud.

It’s very much not a discount cloud provider. They are costly unlike their physical discount grocery stores.

Havoc24 minutes ago
Pretty sure it's the oracle model - the advertised prices don't matter because it's all custom negotiated.
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tjwebbnorfolkabout 1 hour ago
> will sign a major contract tomorrow

Ok so nothing has actually happened. It's also not specified whether this is in addition to their AWS footprint, or if it's a migration. It will be interesting to see an update in 5 years on how this goes.

sammy2255about 1 hour ago
LIDL servers LuL
close04about 1 hour ago
The missing background piece is that the European Commission awarded a 180m EUR sovereign cloud contract to 4 European providers [0]. This framework agreement made the choice of national banks a lot more straight forward.

[0] https://commission.europa.eu/news-and-media/news/commission-...

kjkjadksjabout 3 hours ago
Crazy that a discount grocer can trade blows with big american cloud compute.
browningstreetabout 3 hours ago
Don't you mean that it's crazy that a discount grocer can trade blows with a bookseller?
retiredabout 3 hours ago
LIDL sells everything you need in your life in the middle aisle. Even cloud solutions.
bodelectaabout 2 hours ago
It's going to be hard getting that angle grinder I've never needed when there's a line of CTO's blocking the aisle
burner-phone73about 3 hours ago
The Schwarz Gruppe (owner of Lidl) makes about as much as Meta and Microsoft. So, yes, they're are big player.
rwmjabout 2 hours ago
Getting a large customer is a great win for them, but setting up a cloud service isn't that hard? The most complicated bit would have been financing.
myroon5about 2 hours ago
ivan_gammelabout 2 hours ago
Lidl doesn‘t do that. It is just a grocery discounter, one company of the many in that corporate structure, and one of the users of that cloud.
joaodlfabout 3 hours ago
Not necessarily trading blows, but LIDL is huge in all sorts of figures. From revenue to employment numbers.
Barrin92about 2 hours ago
the parent company (Schwarz Group) has over half a million employees and makes something like 200 billion in revenue per year, I think calling it a discount grocer is underselling it a bit lol.
guywithahatabout 4 hours ago
> DNB Director Steven Maijoor announced last October that he intended to “set a good example” and switch to a European cloud, though he acknowledged that it “is not yet as robust or high-quality as the one from the U.S.”

> Last year, the Dutch Central Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) warned that the Dutch financial sector had become too dependent on foreign IT service providers

I wonder how much if this is a personal choice, and how much is pressure from the government. Banks are famously the first target of politicians, and it's common in China for exec's to publicly choose a national option under pressure from the CPP.

Muromec3 minutes ago
If the DNB says getting our clown computers from Americans is an operational risk, we believe it's an operational risk. Political or not.
wolfi1about 4 hours ago
Lidl is German, so, not fully national, IMHO
graemepabout 2 hours ago
If they cannot provide it nationally, Germany seems a good place to have it, especially as they are both EU.

At the very least a country dependent cloud services from multiple other countries is less dependent on any one of them than a country predominantly dependent on one (and most of Europe is currently dependent on US cloud providers).

tgvabout 1 hour ago
AFAIK, the central bank is independent.
semiquaverabout 2 hours ago
Aldi has a cloud? Do you have to put a quarter in when you log into the console that you get back when you log out?
actionfromafarabout 1 hour ago
Amazon has a cloud? Do you have to buy a book when you log in?