Basecamp (formerly 37 Signals) is quitting the cloud. One of the founders gives some reasons, and he had some detail in a tweet on what they've spent in the cloud the last few years. Over USD$3mm on various services, though their costs in search seem very high. I don't, and haven't, run as busy a business as they do, so I don't know if they've truly done a good job architecting things and setting up services. They say they have, though I'd expect everyone to say and think that.

However, I'll assume they are correct and they can't optimize things any more than they are currently. Their decision makes some sense, and I agree with it. I've been surprised at the growth of the cloud, both in size and how quickly people are moving to the cloud. I've also been saying for years that if you have a steady or known workload, the cloud is likely very expensive.

Maybe that's worth it for your organization. Not dealing with physical resources, maybe having slightly less staff, maybe less CapEx vs. OpEx. Those are decisions for management and finance people. For most of us, the cloud both simplifies some tasks and makes others more complex. Provisioning, testing out Proof-of-concepts, and scaling are easy. Identity protocols, gaining (and keeping) knowledge of how various options work (networking, storage, etc.) , and keeping track of resources become more complex. Not to mention the world constantly shifting under your feet as cloud providers change how their platforms work.

There are costs in both hard dollars (or your currency of choice) and in the time your staff spends dealing with a new way of doing business. The calculation of whether this is a cost that makes sense is very dependent on your situation. I have customers that love the cloud and others that hate it. The value they get varies dramatically and some would never go back to data centers while others are ready to work long hours to leave the cloud. Overall the sentiment is the cloud is great, but like many decisions made by management there are particulars that baffle the technical staff.

The one thing I have learned about the cloud is that it takes a different sort of mentality from staff than on-premises resources. We have to learn to spin things up and down, scaling as needed. We need to better understand budgets and not look at costs as though they were personal expenses. We also need to be flexible with resources, understanding that machines that are idle are not sunk costs; they are ongoing costs.

The cloud is amazing, and I think it is very useful in lots of situations, but a blanket move to the cloud can be expensive. Make sure that everyone involved in moving to the cloud understands that.