Why we're leaving the cloud
Discover why Basecamp is moving away from the cloud and what it means for medium-sized companies.
Oct 19, 2022
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5 min read
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Advanced
Financial Management
Organizational Design
Structure
Technology Integration
Summary
Basecamp, after extensive experience with cloud services, argues that renting cloud infrastructure is not cost-effective for medium-sized companies with stable growth. The text discusses how the cloud is beneficial for startups and businesses with unpredictable loads but not for predictable and stable operations. The author emphasizes the importance of owning hardware, decentralization, and the potential for cost savings and operational control. Explore their rationale and potential implications for your business strategy.
Takeaways
- Basecamp's decision to move away from the cloud emphasizes cost control and operational independence.
- Managing cloud services is not necessarily simpler and may not reduce operational team sizes.
- Over-reliance on major cloud providers centralizes internet infrastructure, posing risks to decentralization.
- Renting cloud services can lead to higher costs compared to owning hardware for consistent operations.
- The cloud is beneficial for startups and unpredictable load scenarios but not for stable, medium-sized companies.