When to use a cloud database | DBaaS Costs | Self Hosted Database Cost

Summary

In this video, Lakshmi Kanan, General Manager for Cockroach Cloud, addresses the common dilemma faced by customers when choosing between a cloud database and self-hosting CockroachDB. She outlines three critical factors to consider: hardware costs (including servers, storage, IOPS, load balancers, and data traffic), software costs (mainly licensing fees), and operational costs (human capital, opportunity cost, and support). Kanan emphasizes the importance of evaluating these costs to make an informed decision that aligns with a company's core business focus.

Takeaways

• 😀 Lakshmi Kanan, General Manager for Cockroach Cloud, discusses the decision-making process for choosing between Cockroach Cloud and self-hosting CockroachDB.
• 💡 Three main factors to consider when deciding between a cloud database and self-hosting are hardware costs, software costs, and operational costs.
• 💻 Hardware costs include servers, storage, IOPS, load balancers, egress and ingress costs, and miscellaneous costs like Kubernetes master nodes.
• 💾 Storage costs are a significant part of hardware expenses, with options like persistent disks or cloud storage services affecting the total cost.
• 🔄 IOPS is a critical component of hardware costs, especially in AWS, where provisioned IOPS like IO1 can be a substantial expense.
• 🌐 Egress and ingress costs refer to the data traffic expenses, which can be unpredictable and vary greatly depending on application needs.
• 💼 Software costs primarily involve the license fees for running a database like CockroachDB, which are typically included in the cloud service pricing.
• 🛠 Operational costs are challenging to quantify and include human capital for maintenance, opportunity costs related to time spent on non-core activities, and support and domain expertise.
• 👨‍💻 Human capital costs involve hiring engineers or SREs for database maintenance, which can be a significant ongoing expense for self-hosted databases.
• ⏰ Opportunity costs represent the time and resources spent on database management that could be allocated to core business activities.
• 🔑 Support and domain expertise are essential for self-hosted databases, requiring either in-house expertise development or reliance on external support services.

Q & A

What is the main question customers often ask regarding CockroachDB?

Customers often ask whether they should use Cockroach Cloud, which is CockroachDB as a service, or if they should host CockroachDB themselves.

What are the three main factors to consider when deciding between a cloud database and a self-hosted database?

The three main factors to consider are hardware costs, software costs, and operational costs.

What does TCO stand for and how does it apply to databases?

TCO stands for Total Cost of Ownership, which is a broad term that applies to the evaluation of the cost of owning any piece of software, including databases.

What are the components of hardware costs when considering a database?

The components of hardware costs include machines/servers, storage costs, IOPS, load balancers, egress and ingress costs, and miscellaneous costs like Kubernetes master nodes.

Why are egress and ingress costs difficult to predict?

Egress and ingress costs, which are the costs of data traffic, are difficult to predict because they depend on the application's traffic patterns, which can vary and are not always straightforward to estimate.

What is included in the software costs when running a database?

Software costs include the license fees for the database software, which is a straightforward cost when self-hosting, but is usually included in the price of a cloud database service.

What are operational costs and why are they hard to quantify?

Operational costs include human capital costs, opportunity costs, and support costs. They are hard to quantify because they involve nebulous factors like the time spent away from core business activities and the expertise required to maintain the database.

What is meant by human capital costs in the context of operational costs?

Human capital costs refer to the expenses associated with hiring and maintaining a team of engineers or site reliability engineers who are responsible for monitoring and maintaining the database system.

Can you explain the concept of opportunity cost in the context of running a database?

Opportunity cost in the context of running a database refers to the resources and time that could be spent on core business activities but are instead used for database maintenance and management, such as setting up backups and handling issues.

What support and domain expertise considerations are there when running a self-hosted database?

When running a self-hosted database, you need to consider building in-house expertise to handle issues and maintain the system. With a cloud database, support is typically provided by the service, reducing the need for in-house expertise.

Why is it important to consider both hidden and not-so-hidden costs when choosing between a cloud database and self-hosting?

It's important to consider all costs because hidden costs like opportunity costs and the need for in-house expertise can significantly impact the total cost and resource allocation of a business, potentially affecting the focus on core competencies.