[HCoop-Discuss] On organizing people to get work done

[Daniel Margolis]

So your claim is that our overhead costs are over 55 times those of Amazon?
(Peer1 costs are fixed overhead rather than per unit with respect to
bandwidth, CPU, and disk usage.)

That actually seems kind of credible, but it seems to lend credence to the
notion that we could save by going with a VPS (which presumably has similar
economies of scale to Amazon).
On Fri, May 8, 2009 at 9:02 AM, Adam Chlipala <adamc at hcoop.net> wrote:

> Daniel Margolis wrote:
> > What makes it clear that the users paying the minimum are being
> > subsidized? Is the monthly cost of 122MB of disk usage and hardly any
> > CPU or bandwidth really over $3? On Amazon, that much storage and
> > equivalent transfer is $0.09/month. I think I'm subsidizing you.
> >
> > On 5/7/2009 4:20 PM, David Snider wrote:
> >
> >> This is the problem I've always had with this 'share' type scheme. The
> >> users paying the rock bottom price tend to get pissed when the true cost
> of
> >> the services are no longer subsidized.
> >>
>
> You need to take into account the black box of costs that is the rate
> Peer 1 charges us.  What calculations are you using to determine your
> fair share of that?  I'm guessing that most of the Peer 1 rate covers
> staff and physical space.  All member storage together takes up a
> negligible fraction of that space.  Do you have a better scheme to
> suggest than splitting Peer 1 costs evenly, in the absence of a clear
> idea of how each member's usage contributes to that cost?  Currently, an
> even split leaves each member with a share over $5.
>
> I'm not saying that we can't rearrange our hardware situation to lower
> costs, but to me it's clear that, yes, with our current hardware set-up,
> any member paying only $5/mo. is being subsidized.
>
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