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From: FUBHO6/9/2019 4:51:15 PM
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AWS costs every programmer should know Jun 9, 2019 • David Hatanian

The title for this blog post is a direct reference to Latency Numbers Every Programmer Should Know. There are several versions of those numbers available now, and I could not find the original author with certainty. Some people attribute the original numbers to Jeff Dean.

When working on a project that will reach a certain scale, you need to balance several concerns. What assumptions am I making and how do I confirm them? How can I get to market quickly? Will my design support the expected scale?

One of the issues associated with scale, is the cost of your infrastructure. Cloud providers allow you to provisions thousands of CPUs and store terabytes of data at the snap of a finger. But that comes at a cost, and what is negligible for a few thousand users might become a burning hole in your budget when you reach millions of users.

In this article, I’m going to list reference numbers I find useful to keep in mind when considering an architecture. Those numbers are not meant for accurate budget estimation. They’re here to help you decide if your design makes sense or is beyond what you could ever afford. So consider the orders of magnitude and relative values rather than the absolute values.

Also consider that your company may get discounts from AWS, and those can make a massive difference.

Compute What’s the cost of a CPU these days? I used the wonderful ec2instances.info interface to extract the median price of a vCPU.

You can get the source data out of their Github repo. I copied it and processed it using a python script that you can find on Github. All prices are for the eu-west-1 region.

Median monthly cost
1 modern vCPU (4 AWS ECUs) 58 $/month
With 1 year convertible reservation (all up front) 43 $/month
With 3 years convertible reservation (all up front) 30 $/month
With spot pricing (estimated) 30 $/month

I estimated spot pricing based on anecdotal data I got from various sources. As the prices vary within a day and I could not find a reliable data source for it.

AWS represents the computing power of its machines in Elastic Compute Units, and 4 ECUs represent more or less the power of a modern CPU. So the prices above are for one CPU or core, not one instance.

Here’s the price of 1 ECU in $ per hour across all instance types I looked at:



And here’s how on-demand compares with 1 year and 3 year reservations (both convertible, upfront payments):



Storage So you want low latency, high throughput and are planning to store everything in Redis? Then on top of those CPU costs, you’ll need to pay for RAM.

I used the same approach to extract the median price of 1GB of RAM on EC2. Elasticache is more or less twice as expensive for on-demand but prices drop quite quickly when looking at reserved instances.

Median monthly cost
1 GB RAM 10 $/month
1 GB RAM 1 year convertible reservation (all up front) 8 $/month
1 GB RAM 3 years convertible reservation (all up front) 5 $/month
SSD 0.11 $/month
Hard Disk 0.05 $/month
S3 0.02 $/month
S3 Glacier 0.004 $/month

« Advent of Code 2018

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From: Sr K6/11/2019 9:12:04 AM
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WSJ

June 11, 2019 6:00 a.m. ET

Amazon Ends Restaurant Delivery in Face of Fierce Competition

Shutdown comes after the company invested in British food-delivery company Deliveroo

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From: Glenn Petersen6/12/2019 9:46:14 PM
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Jet.com falls by wayside as Walmart focuses on its website, online grocery

Nandita Bose
Reuters
June 12, 2019

WASHINGTON (Reuters) - Walmart Inc on Wednesday announced a sweeping overhaul at Jet.com, an online start-up it acquired in 2016 for $3.3 billion, after it failed to live up to the world’s largest retailer’s e-commerce ambitions.



FILE PHOTO: Walmart's logo is seen outside one of the stores in Chicago, Illinois, U.S., November 20, 2018. REUTERS/Kamil Krzaczynski
_________________

Walmart said it will integrate Jet.com’s retail, technology, marketing, analytics and product teams with its own online business. The current president of Jet.com, Simon Belsham, will leave in early August.

Walmart’s move reduces the scope and importance of Jet.com in its overall U.S. e-commerce business, which competes with Amazon.com Inc, according to interviews with six vendors, two consultants and three Walmart employees.

Jet.com, which was expected to boost Walmart’s reach particularly with city dwellers and millennial shoppers, failed to become a driver for online grocery sales and growing market share in urban areas, the sources added.

Walmart has put more emphasis on shopper perks such as same-day delivery and curbside pickup of groceries ordered online, focusing on food and grocery sales using those delivery methods. Jet, as a platform to sell similar items, has fallen by the wayside, the sources added.

The Jet overhaul is the latest sign that Walmart is attempting to fix the ways it reaches shoppers using different websites and delivery methods. Earlier this year, it ended a delivery partnership with Google-backed Deliv and last year Reuters reported its struggles to use its own employees to deliver products.

Multiple large and medium-sized consumer goods companies that do business with both Walmart and Jet have told Reuters they began noticing Walmart executives buying less of their merchandise to sell through Jet.

The reductions in Walmart’s order sizes for its Jet unit, they said, started in March, when many vendors began discussing business priorities with Walmart for the 2019 fiscal year.

In 2016, Jet forecast revenue of $1 billion and according to recent estimates from consulting firm Kantar, which was shared with some vendors, the company’s sales shrunk to $689 million in 2019.

The data from Kantar also shows the number of U.S. households that shopped on Jet.com in January 2019 was 2%, down from 3% during the same period three years ago, forcing Walmart to recalibrate using Jet as a platform to drive online grocery sales.

Several vendors, who told Reuters they were keen to introduce new packaging and pricing on Walmart.com and Walmart-owned websites like Jet this year, said the retailer told them to look for ways to push more sales on Walmart.com going forward and not spend resources on a new strategy for sales of their merchandise on Jet.

Walmart merchants are also informing grocery, apparel and electronics suppliers that want to introduce new products online that Jet is not a priority, according to vendor sources.

Separately, current and former Jet employees told Reuters that Hoboken, New Jersey-based Jet, is struggling to keep up its sales momentum and hit revenue goals. Two retail consultants, who advise Walmart on e-commerce and online grocery, have confirmed to Reuters that Jet is failing to keep pace with Walmart’s internal sales goals.

They said Walmart has de-prioritized the business and is focusing more on growing sales through its namesake website and offering a broader assortment of fashion and accessories through the multiple smaller brands like Moosejaw, Modcloth, Bonobos, Eloquii, Hayneedle and others it has acquired in the past few years to attract millennials.

The retailer has previously said it expects losses from its online business, including Jet.com, to increase this year, without giving additional details. In the most recent quarter, Walmart’s online sales grew 37% and Marc Lore, founder of Jet.com, who Walmart hired in 2016 to run its U.S. e-commerce operations, is still leading the business.

In 2018, the first cracks in Jet’s business started to appear when Walmart’s CEO said the retailer’s marketing efforts will always be centered on Walmart.com as it is cheaper to acquire a new customer nationally with such a strategy and it is investing fewer ad dollars in Jet. He said the retailer will target Jet’s investments in urban markets, where the business is “well-positioned to grow.”

A study from a retail analytics firm the same year found shopper traffic on Jet.com had declined in March, a study Walmart said then was inaccurate and not reflective of a trend.

Going forward, Kieran Shanahan, who oversees Walmart’s food, consumables, health and wellness categories, will be responsible for Jet.com’s strategy and management, in addition to his current role.

Reporting by Nandita Bose in Washington; Editing by Lisa Shumaker

reuters.com

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From: Sr K6/13/2019 7:48:10 PM
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In a mixed day, but with indices up, AMZN was +.81%, and WMT -.16%, or a total +.97%.

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From: Sr K6/14/2019 9:54:03 AM
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WSJ article on taxation and a rebuttal to Democrats bickering about Amazon paying taxes, points out that

some key offsets are the $160 billion of investments in their warehouses, cloud computing, wind and solar investments, and employee gains when options were exercised, not the earlier estimate of issuance cost.

They say:

What else is lowering Amazon’s tax rate? When companies give employees restricted stock grants, companies take an expense for financial statement purposes, based on estimated value. The tax deduction isn’t set until compensation vests and employees can take it—and pay personal income taxes on it. If a company awards restricted stock worth $20, it records a $20 expense and assumes it will get a $20 tax deduction. But if the stock price rises and it vests at $35, the company then takes a larger-than-expected tax deduction.

wsj.com

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From: JakeStraw6/14/2019 1:07:14 PM
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Joe Biden’s Twitter fight with Amazon perfectly sums up the battle over America’s new tax code
cnbc.com
Amazon and Joe Biden are in a Twitter spat, and it perfectly captures the controversy over America’s new tax code.

“I have nothing against Amazon, but no company pulling in billions of dollars of profits should pay a lower tax rate than firefighters and teachers,” Biden writes. “We need to reward work, not just wealth.”

“Assume VP Biden’s complaint is w/ the tax code, not Amazon,” the company responds.

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To: JakeStraw who wrote (163768)6/14/2019 1:24:34 PM
From: Glenn Petersen
   of 163946
 
“Assume VP Biden’s complaint is w/ the tax code, not Amazon,” the company responds.

A tax code that Joe Biden had some hand in writing.

The political season is guaranteed to trigger the “willful ignorance” gene in our politicians.


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To: Sr K who wrote (163767)6/14/2019 2:19:41 PM
From: Labrador
   of 163946
 
So Amazon gets a tax deduction of $35 (US corporate federal tax rate is 21%) and the employee has taxable wage income of $35 (current individual federal tax rate is 37%). So the government walks away with extra tax of $35 x 16% = $5.60.

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To: JakeStraw who wrote (163768)6/14/2019 2:22:26 PM
From: Sr K
   of 163946
 
Biden is a pandering idiot.

That "new tax code" was passed 26 or more years ago.

This started in 1993 when a combination of Bill Clinton and Newt Gingrich, and Congress, passed a limitation on the deductibility of salaries over $1,000,000/year. In response, companies issued more stock to tie compensation to stock gains realized. If stocks go down, they expire. If they go up, they value them on the front-end using a measurable expectation, usually using a Black-Scholes valuation, as granted. But if the gain is a lot, they have to look when they vested, and the employee pays more taxes due some time later, possibly the end of tax year of vesting plus time to the next April 15. To match gains and expenses, the company gets a tax deduction then for the other side of an employee or even a director exercising for a gain. Those negative costs can be seen in a Statement Of Cash Flows.

It's a significant offset to a company when options rise in value and vest with a gain for the shareholder.

Apparently Biden only looks at the employee side, or doesn't even see that, and is surprised that Amazon and many other companies get the losses (deductions) from employee exercises when a stock rises. They also get instant deductions for capital expenses (current law), for warehouses and sortation centers they operate, and even for the towers they've built around Seattle and the world.

The WSJ today asks and then answers some of these questions by the pandering candidates who want employees to gain, consistent with a socialist model, and for the companies to build and lose, what he is aiming for, until he gets nominated, and remembers what he's running for.

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To: Labrador who wrote (163770)6/14/2019 2:42:45 PM
From: Sr K
   of 163946
 
Even though SALT is a current topic in the news, for Individuals, companies deduct SALT so the .21 can grow by compounding of .06 and .21 or even .09 plus .21. The $35 in the WSJ example as a stock price rising, sounds familiar because of the old 35% rate for larger corporations, but has nothing to do with a .35 rate.

You may know it better.

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