Dropbox saved nearly $75 million by repatriating workloads from the public cloud and building its own tech infrastructure, the company detailed in its S-1. That such a large company would move largely off public cloud, where startups often begin and established companies shed legacy systems to get to, seemed an anomaly.
But as cloud computing continues to mature, the costs of running such infrastructure is catching up creating a “trillion dollar paradox,” according to a recent report from venture capital firm Andreessen Horowitz (a16z), coauthored by Sarah Wang, a partner at a16z, and Martin Casado, general partner at a16z.