37 Signals Says Cloud Repatriation Plan Has Already Saved It $1 Million

David Heinemeier Hansson, CTO of SaaS project management outfit 37Signals, has posted an update on the cloud repatriation project he's led, writing that it's already saved the company $1 million. The Register: Hansson has previously revealed that his company spent $3.2 million a year on cloud computing, most of it at Amazon Web Services. His repatriation plan called for the company to spend $600,000 on eight meaty servers that each pack 256 virtual CPUs, and have them hosted at an outfit called Deft. That plan was projected to save $7 million over five years. In his Saturday post, Hansson wrote he now thinks he can find $10 million of savings in the same period.

'Our cloud spend is down by 60 percent already... from around $180,000/month to less than $80,000,' he wrote, qualifying that the number excludes the cost of Amazon Web Services's Simple Storage Service. 'That's a cool million dollars in savings at the yearly run rate, and we have another big drop coming in September, before the remaining spend will petter out through the rest of the year,' he added. The CTO revealed that the 37 Signals ops team remains the same size even though it now tends its own hardware, which cost 'about half a million dollars.'

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