37Signals Abandoned the Cloud

Posted under: Computing
Date: 2023-12-27
37Signals Abandoned the Cloud

A thriving web software company, 37Signals, has moved entirely off the cloud over the past year and is raising spirited holiday discussions around the comparative virtues of running operations on-premises or in the cloud. The company, known for its Basecamp project management software and Hey! email service, plans to run operations in-house using its own tooling instead of expensive enterprise service contracts. Cloud computing initially aimed to simplify business processes, but its complexity and high costs have made it less valuable for mid-sized businesses. Cloud services have become complex and expensive, leading to a loss of independence for customers. Moving workloads and data between clouds is not trivial or inexpensive, costing 37Signals hundreds of thousands of dollars due to egress costs. The complexity of cloud bills has led to the emergence of FinOps, a new industry to help organizations optimize their cloud spend.

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