BiB089 Why Coronavirus Pandemic Could Ignite Cloud Repatriation

I had a quick chat with Mike Dvorkin after we had a twitter interaction about whether the Coronavirus could impact the much touted public cloud transition. I’m not sure we solved the problem but maybe the discussion can provoke some thoughts. Transcription Trial We are trialing an automated transcription service and here is the details. [00:00:00] Greg Ferro: this is Greg Ferro and I’m here with Mike Dvorkin, the @dvorkinista on Twitter. How are you buddy?  Mike Dvorkin: Hey man,  Greg Ferro: we don’t talk often enough anymore, but you send out a tweet today, which really caught my attention where you actually said, I made a comment and said something along the lines of. should we defy, discuss the impact of covert like that? You know, the coronavirus thing, and then you popped up and said, I think the coven 19 pandemic will trigger the drive for decentralization and will accelerate cloud repatriation. And a whole bunch of the clan rati have gone to apoplectic in mindful to at a timeline going like, this is the true believers. That’s not the narrative, you know, whatever. So tell me, look, how do you come to that logic? Mike Dvorkin: Well to me, it’s sort of like, you know, if you look at the world in general  and you look at like how like established supply chain management things are like basically crumbling though. Yeah. everything is very fragile because we sort of like centralize things where  example, our manufacturer who are like over-reliant China, for example, like there’s, there’s  a [00:01:00] huge shortage issue of  drugs now in this country because we imported from China and now China like needs to use them for the domestic market and their production capacities now, and then they cannot provide that to this country. And now we’re in the crisis. So if you start looking at public cloud. It’s basically,  kind of like China, right? Where like outsource our data centers and then  all of these sort of  compute capacity, do them and would pay money to like give it back to us and it’s really sounds wonderful, but like, you know what’s going to happen,  look  one day. There’s gotta be fanatic and , you know, he mentioned what happens with , let’s say an availability zone disappears because it’s on the area affected by polygenic and everyone’s sick   Greg Ferro: so if you have a serious pandemic  right close to the area, North Virginia where all the data centers are, you’re going to lose 40% of the cloud capacity in the world when there’s nobody there. Mike Dvorkin: the economy  collapse,  Greg Ferro: right? Being bad  Mike Dvorkin: is going to be devastating.  Greg Ferro: Okay. So do you think that people are literally going to evaluate their supply chains and then go this over dependent on the cloud as a weakness? [00:02:00]  Mike Dvorkin: I think it needs to be considered what everybody’s going to do. No financials, I guess it makes us, for them to work, actually understand that as one of the risk factors. Greg Ferro: There are some very large banks that have made decisions to be completely out of the cloud. Now their reasons are in two parts. one is the dependency issue. They don’t want to be dependent on a third party supplier because they don’t think it meets their obligations. Now I know that some banks believe differently and that’s okay. A diversity of opinion is fine. And another reason is that they say, if I move into the cloud, every time I make more money, I have to pay more money. I don’t make, I don’t increase my profit margin from  Mike Dvorkin: the cost is a very big deal. . I mean, the cloud. And like it’s certain scale. It’s sort of like, Oh my God, it’s so easy. It’s like so easy to consume. So two problems with it.…