A core at this are all the 'managed' services - if you have a server box, its in your financial interest to squeeze as much per out of it as possible. If you're using something like ECS or serverless, AWS gains nothing by optimizing the servers to make your code run faster - their hard work results in less billed infrastructure hours.
This 'microservices' push usually means that instead of having an on-server session where you can serve stuff from a temporary cache, all the data that persists between requests needs to be stored in a db somewhere, all the auth logic needs to re-check your credentials, and something needs to direct the traffic and load balance these endpoint, and all this stuff costs money.
I think if you have 4 Java boxes as servers with a redundant DB with read replicas on EC2, your infra is so efficient and cheap that even paying 4x for it rather than going for colocation is well worth it because of the QoL and QoS.
These crazy AWS bills usually come from using every service under the sun.
It runs slower than a bloated pig, especially on a shared hosting node, so now needs Kubernetes and cloud orchestration to make it “scalable” - beyond a few requests per second.
1) Senior engineer starts on AWS
2) Senior engineer leaves because our industry does not value longevity or loyalty at all whatsoever (not saying it should, just observing that it doesn't)
3) New engineer comes in and panics
4) Ends up using a "managed service" to relieve the panic
5) New engineer leaves
6) Second new engineer comes in and not only panics but outright needs help
7) Paired with some "certified AWS partner" who claims to help "reduce cost" but who actually gets a kickback from the extra spend they induce (usually 10% if I'm not mistaken)
Calling it it ransomware is obviously hyperbolic but there are definitely some parallels one could draw
On top of it all, AWS pricing is about to massively go up due to the RAM price increase. There's no way it can't since AWS is over half of Amazon's profit while only around 15% of its revenue.
In theory with perfect documentation they’d have a good head start to learn it, but there is always a lot of unwritten knowledge involved in managing an inherited setup.
With AWS the knowledge is at least transferable and you can find people who have worked with that exact thing before.
Engineers also leave for a lot of reasons. Even highly paid engineers go off and retire, change to a job for more novelty, or decide to try starting their own business.
unfortunately it lot of things in AWS that also could be messed up so it might be really hard to research what is going on. For example, you could have hundreds of Lambdas running without any idea where original sources and how they connected to each-other, or complex VPCs network routing where some rules and security groups shared randomly between services so if you do small change it could lead to completely difference service to degrade (like you were hired to help with service X but after you changes some service Y went down and you even not aware that it existed)
"Today, we are going to calculate the power requirements for this rack, rack the equipment, wire power and network up, and learn how to use PXE and iLO to get from zero to operational."
Part of what clouds are selling is experience. A "cloud admin" bootcamp graduate can be a useful "cloud engineer", but it takes some serious years of experience to become a talented on prem sre. So it becomes an ouroboros: moving towards clouds makes it easier to move to the clouds.
That is not true. It takes a lot more than a bootcamp to be useful in this space, unless your definition is to copy-paste some CDK without knowing what it does.
If by useful you mean "useful at generating revenue for AWS or GCP" then sure, I agree.
These certificates and bootcamps are roughly equivalent to the Cisco CCNA certificate and training courses back in the 90's. That certificate existed to sell more Cisco gear - and Cisco outright admitted this at the time.
But will the market demand it? AWS just continues to grow.
The number of things that these 24x7 people from AWS will cover for you is small. If your application craps out for any number of reasons that doesn't have anything to do with AWS, that is on you. If your app needs to run 24x7 and it is critical, then you need your own 24x7 person anyway.
Meanwhile AWS breaks once or twice a year.
I've only had one outage I could attribute to running on-prem, meanwhile it's a bit of a joke with the non-IT staff in the office that when "The Internet" (i.e. Cloudflare, Amazon) goes down with news reports etc our own services are all running fine.
I am sure it happens a multitude of ways but I have never seen the case you are describing.
What do you think RedHat support contracts are? This situation exists in every technology stack in existence.
> 4) Ends up using a "managed service" to relieve the panic
It's not as though this is unique to cloud.
I've seen multiple managers come in and introduce some SaaS because it fills a gap in their own understanding and abilities. Then when they leave, everyone stops using it and the account is cancelled.
The difference with cloud is that it tends to be more central to the operation, so can't just be canceled when an advocate leaves.
I'll give you an alternative scenario, which IME is more realistic.
I'm a software developer, and I've worked at several companies, big and small and in-between, with poor to abysmal IT/operations. I've introduced and/or advocated cloud at all of them.
The idea that it's "more expensive" is nonsense in these situations. Calculate the cost of the IT/operations incompetence, and the cost of the slowness of getting anything done, and cloud is cheap.
Extremely cheap.
Not only that, it can increase shipping velocity, and enable all kinds of important capabilities that the business otherwise just wouldn't have, or would struggle to implement.
Much of the "cloud so expensive" crowd are just engineers too narrowly focused on a small part of the picture, or in denial about their ability to compete with the competence of cloud providers.
This has been my experience as well. There are legitimate points of criticism but every time I’ve seen someone try to make that argument it’s been comparing significantly different levels of service (e.g. a storage comparison equating S3 with tape) or leaving out entire categories of cost like the time someone tried to say their bare metal costs for a two server database cluster was comparable to RDS despite not even having things like power or backups.
As far as I know, nothing comes close to Aurora functionality. Even in vibecoding world. No, 'apt-get install postgres' is not enough.
What you’re asking for can mostly be pieced together, but no, it doesn’t exist as-is.
Failover: this has been a thing for a long time. Set up a synchronous standby, then add a monitoring job that checks heartbeats and promotes the standby when needed. Optionally use something like heartbeat to have a floating IP that gets swapped on failover, or handle routing with pgbouncer / pgcat etc. instead. Alternatively, use pg_auto_failover, which does all of this for you.
Clustering: you mean read replicas?
Volume-based snaps: assuming you mean CoW snapshots, that’s a filesystem implementation detail. Use ZFS (or btrfs, but I wouldn’t, personally). Or Ceph if you need a distributed storage solution, but I would definitely not try to run Ceph in prod unless you really, really know what you’re doing. Lightbits is another solution, but it isn’t free (as in beer).
Cross-region replication: this is just replication? It doesn’t matter where the other node[s] are, as long as they’re reachable, and you’ve accepted the tradeoffs of latency (synchronous standbys) or potential data loss (async standbys).
Metrics: Percona Monitoring & Management if you want a dedicated DB-first, all-in-one monitoring solution, otherwise set up your own scrapers and dashboards in whatever you’d like.
What you will not get from this is Aurora’s shared cluster volume. I personally think that’s a good thing, because I think separating compute from storage is a terrible tradeoff for performance, but YMMV. What that means is you need to manage disk utilization and capacity, as well as properly designing your failure domain. For example, if you have a synchronous standby, you may decide that you don’t care if a disk dies, so no messing with any kind of RAID (though you’d then miss out on ZFS’ auto-repair from bad checksums). As long as this aligns with your failure domain model, it’s fine - you might have separate physical disks, but co-locate the Postgres instances in a single physical server (…don’t), or you might require separate servers, or separate racks, or separate data centers, etc.
tl;dr you can fairly closely replicate the experience of Aurora, but you’ll need to know what you’re doing. And frankly, if you don’t, even if someone built a OSS product that does all of this, you shouldn’t be running it in prod - how will you fix issues when they crop up?
Nobody doubts one could build something similar to Aurora given enough budget, time, and skills.
But that's not replicating the experience of Aurora. The experience of Aurora is I can have all of that, in like 30 lines of terraform and a few minutes. And then I don't need to worry about managing the zpools, I don't need to ensure the heartbeats are working fine, I don't need to worry about hardware failures (to a large extent), I don't need to drive to multiple different physical locations to set up the hardware, I don't need to worry about handling patching, etc.
You might replicate the features, but you're not replicating the experience.
Managed services have a clear value proposition. I personally think they're grossly overpriced, but I understand the appeal. Asking for that experience but also free / cheap doesn't make any sense.
If ECS is faster, then you're more satisfied with AWS and less likely to migrate. You're also open to additional services that might bring up the spend (e.g. ECS Container Insights or X-Ray)
Source: Former Amazon employee
We used EFS to solve that issue, but it was very awkward, expensive and slow, its certainly not meant for that.
My biggest gripe with this is async tasks where the app does numerous hijinks to avoid a 10 minute lambda processing timeout. Rather than structure the process to process many independent and small batches, or simply using a modest container to do the job in a single shot - a myriad of intermediate steps are introduced to write data to dynamo/s3/kinesis + sqs/and coordination.
A dynamically provisioned, serverless container with 24 cores and 64 GB of memory can happily process GBs of data transformations.
Microservices is a killer with cost. For each microservices pod - you're often running a bunch of side cars - datadog, auth, ingress - you pay massive workload separation overhead with orchestration, management, monitoring and ofc complexity
I am just flabbergasted that this is how we operate as a norm in our industry.
If you can keep 4 "Java boxes" fed with work 80%+ of the time, then sure EC2 is a good fit.
We do a lot of batch processing and save money over having EC2 boxes always on. Sure we could probably pinch some more pennies if we managed the EC2 box uptime and figured out mechanisms for load balancing the batches... But that's engineering time we just don't really care to spend when ECS nets us most of the savings advantage and is simple to reason about and use.
You don’t need colocation to save 4x though. Bandwidth pricing is 10x. EC2 is 2-4x especially outside US. EBS for its iops is just bad.
[0] https://carolinacloud.io, derek@
So in practice cloud has become the more expensive option the second your spend goes over the price of 1 engineer.
I see it from the other direction, when if something fails, I have complete access to everything, meaning that I have a chance of fixing it. That's down to hardware even. Things get abstracted away, hidden behind APIs and data lives beyond my reach, when I run stuff in the cloud.
Security and regular mistakes are much the same in the cloud, but I then have to layer whatever complications the cloud provide comes with on top. If cost has to be much much lower if I'm going to trust a cloud provider over running something in my own data center.
The main benefit of outsourcing to aws etc is that the CEO isn't yelling at you when it breaks, because their golf buddies are in the same situation.
We figured, "Okay, if we can do this well, reliably, and de-risk it; then we can offer that as a service and just split the difference on the cost savings"
(plus we include engineering time proportional to cluster size, and also do the migration on our own dime as part of the de-risking)
Expect a significant exit expense, though, especially if you are shifting large volumes of S3 data. That's been our biggest expense. I've moved this to Wasabi at about 8 euros a month (vs about $70-80 a month on S3), but I've paid transit fees of about $180 - and it was more expensive because I used DataSync.
Retrospectively, I should have just DIYed the transfer, but maybe others can benefit from my error...
https://aws.amazon.com/blogs/aws/free-data-transfer-out-to-i...
But. Don't leave it until the last minute to talk to them about this. They don't make it easy, and require some warning (think months, IIRC)
Hopefully someone else will benefit from this helpful advice.
Out of interest, how old are you? This was quite normal expectation of a technical department even 15 years ago.
It’s not rocket science, especially when you’re talking about small amounts of data (small credit union systems in my example).
Even at their peak, Heroku was a niche. If you’d gone conferences like WWDC or Pycon at the time, they’d be well represented, yes, and plenty of people liked them but it wasn’t a secret that they didn’t cover everyone’s needs or that pricing was off putting for many people, and that tended to go up the bigger the company you talked to because larger organizations have more complex needs and they use enough stuff that they already have teams of people with those skills.
I find it equally disingenuous to suggest that Heroku was only for startups with lavish budgets. Absolutely not true. That’s my only purpose here. Everyone has different experiences but don’t go and push your own narrative as the only one especially when it’s not true.
The world's a lot bigger than startups
Your original statement is factually incorrect.
It's 2026 and banks are still running their mainframe, running windows VMs on VMware and building their enterprise software with Java.
The big boys still have their own datacenters they own.
Sure, they try dabbling with cloud services, and maybe they've pushed their edge out there, and some minor services they can afford to experiment with.
See, turning up a VM, installing and running Postgres is easy.
The hard part is keeping it updated, keeping the OS updated, automate backups, deploying replicas, encrypting the volumes and the backups, demonstrating to a third party auditor all of the above... and mind that there might be many other things I honestly ignore!
I'm not saying I won't go that path, it might be a good idea after a certain scale, but in the first and second year of a startup your mind should 100% be on "How can I make my customer happy" rather than "We failed again the audit, we won't have the SOC 2 Type I certification in time to sign that new customer".
If deciding between Hetzner and AWS was so easy, one of them might not be pricing its services correctly.
Also, just availability of these things on AWS has been a real pain - I think every startup got a lot of credits there, so flood of people trying to then use them.
One point to keep in mind is that the effort is not constant. Once you reach a certain level of competency and stability in your setup, there is not much difference in time spent. I also felt that self-managed gave us more flexibility in terms of tuning.
My final point is that any investment in databases whether as a developer or as an ops person is long-lived and will pay dividends for a longer time than almost all other technologies.
Take two equivalent machines, set up with streaming replication exactly as described in the documentation, add Bacula for backups to an off-site location for point-in-time recovery.
We haven't felt the need to set up auto fail-over to the hot spare; that would take some extra effort (and is included with AWS equivalents?) but nothing I'd be scared of.
Add monitoring that the DB servers are working, replication is up-to-date and the backups are working.
Same here. But, I assume you have managed PostgreSQL in the past. I have. There are a large number of people software devs who have not. For them, it is not a low complexity task. And I can understand that.
I am a software dev for our small org and I run the servers and services we need. I use ansible and terraform to automate as much as I can. And recently I have added LLMs to the mix. If something goes wrong, I ask Claude to use the ansible and terraform skills that I created for it, to find out what is going on. It is surprisingly good at this. Similarly I use LLMs to create new services or change configuration on existing ones. I review the changes before they are applied, but this process greatly simplifies service management.
I'd say needing to read the documentation for the first time is what bumps it up from low complexity to medium. And then at medium you should still do it if there's a significant cost difference.
I think if it were true that the tuning is easier if you run the infrastructure yourself, then this would be a good point. But in my experience, this isn't the case for a couple reasons. First of all, the majority of tuning wins (indexes, etc.) are not on the infrastructure side, so it's not a big win to run it yourself. But then also, the professionals working at a managed DB vendor are better at doing the kind of tuning that is useful on the infra side.
With a managed solution, all of that is amortized into your monthly payment, and you're sharing the cost of it across all the customers of the provider of the managed offering.
Personally, I would rather focus on things that are in or at least closer to the core competency of our business, and hire out this kind of thing.
this part is actually scariest, since there are like 10 different 3rd party solutions of unknown stability and maintanability.
- 2x Intel Xeon 5218
- 128gb Ram
- 2x960GB SSD
- 30TB monthly bandwidth
I pay around an extra $200/month for "premium" support and Acronis backups, both of which have come in handy, but are probably not necessary. (Automated backups to AWS are actually pretty cheap.) It definitely helps with peace of mind, though.
I have setup encrypted backups to go to my backup server in the office. We have a gigabit service at the office. Critical data changes are backed up every hour and full backup once a day.
The flip side is that compliance is a little more involved. Rather than, say, carve out a whole swathe of SOC-2 ops, I have to coordinate some controls. It's not a lot, and it's still a lot lighter than I used to do 10+ years ago. Just something to consider.
There is a world of difference between renting some cabinets in an Equinix datacenter and operating your own.
5 - Datacenter (DC) - Like 4, except also take control of the space/power/HVAC/transit/security side of the equation. Makes sense either at scale, or if you have specific needs. Specific needs could be: specific location, reliability (higher or lower than a DC), resilience (conflict planning).
There are actually some really interesting use cases here. For example, reliability: If your company is in a physical office, how strong is the need to run your internal systems in a data centre? If you run your servers in your office, then there's no connectivity reliability concerns. If the power goes out, then the power is out to your staff's computers anyway (still get a UPS though).
Or perhaps you don't need as high reliability if you're doing only batch workloads? Do you need to pay the premium for redundant network connections and power supplies?
If you want your company to still function in the event of some kind of military conflict, do you really want to rely on fibre optic lines between your office and the data center? Do you want to keep all your infrastructure in such a high-value target?
I think this is one of the more interesting areas to think about, at least for me!
Offices are usually very expensive real estate in city centers and with very limited cooling capabilities.
Then again the US is a different place, they don't have cities like in Europe (bar NYC).
Thank goodness we did all the capex before the OpenAI ram deal and expensive nvidia gpus were the worst we had to deal with.
It sounds like they probably have revenue in the €500mm range today. And given that the bare metal cost of AWS-equivalent bills tends to be a 90% reduction, we'll say a €10mm+ bare metal cost.
So I would say a cautious and qualified "yes". But I know even for smaller deployments of tens or hundreds of servers, they'll ask you what the purpose is. If you say something like "blockchain," they're going to say, "Actually, we prefer not to have your business."
I get the strong impression that while they naturally do want business, they also aren't going to take a huge amount of risk on board themselves. Their specialism is optimising on cost, which naturally has to involve avoiding or mitigating risk. I'm sure there'd be business terms to discuss, put it that way.
(While we’re all speculating)
I wouldn't be surprised if mining is also associated with fraud (e.g. using stolen credit cards to buy compute).
Netflix might be spending as much as $120m (but probably a little less), and I thought they were probably Amazon's biggest customer. Does someone (single-buyer) spend more than that with AWS?
Hertzner's revenue is somewhere around $400m, so probably a little scary taking on an additional 30% revenue from a single customer, and Netflix's shareholders would probably be worried about risk relying on a vendor that is much smaller than them.
Sometimes if the companies are friendly to the idea, they could form a joint venture or maybe Netflix could just acquire Hertzner (and compete with Amazon?), but I think it unlikely Hertzner could take on Netflix-sized for nontechnical reasons.
However increasing pop capacity by 30% within 6mo is pretty realistic, so I think they'd probably be able to physically service Netflix without changing too much if management could get comfortable with the idea
I'm not convinced.
I assume someone at Netflix has thought about this, because if that were true and as simple as you say, Netflix would simply just buy Hetzner.
I think there lots of reasons you could have this experience, and it still wouldn't be Netflix's experience.
For one, big applications tend to get discounts. A decade ago when I (the company I was working for) was paying Amazon a mere $0,2M a month and getting much better prices from my account manager than were posted on the website.
There are other reasons (mostly from my own experiences pricing/costing big applications, but also due to some exotic/unusual Amazon features I'm sure Netflix depends on) but this is probably big enough: Volume gets discounts, and at Netflix-size I would expect spectacular discounts.
I do not think we can estimate the factor better than 1.5-2x without a really good example/case-study of a company someplace in-between: How big are the companies you're thinking about? If they're not spending at least $5m a month I doubt the figures would be indicative of the kind of savings Netflix could expect.
When I used to compare to aws, only egress at list price costs as much as my whole infra hosting. All of it.
I would be very interested to understand why netflix does not go 3/4 route. I would speculate that they get more return from putting money in optimising costs for creating original content, rather than cloud bill.
A little scare for both sides.
Unless we're misunderstanding something I think the $100Ms figure is hard to consider in a vacuum.
I’m not surprised, but you’d think there would be some point where they would decide to build a data center of their own. It’s a mature enough company.
Is it still the cheapest after you take into account that skills, scale, cap-ex and long term lock-in also have opportunity costs?
You can get locked into cloud too.
The lock in is not really long term as it is an easy option to migrate off.
If you're willing to share, I'm curious who else you would describe as being in this space.
My last decade and a half or so of experience has all been in cloud services, and prior to that it was #3 or #4. What was striking to me when I went to the Lithus website was that I couldn't figure out any details without hitting a "Schedule a Call" button. This makes it difficult for me to map my experiences in using cloud services onto what Lithus offers. Can I use terraform? How does the kubernetes offering work? How does the ML/AI data pipelines work? To me, it would be nice if I could try it out in a very limited way as self-service, or at least read some technical documentation. Without that, I'm left wondering how it works. I'm sure this is a conscious decision to not do this, and for good reasons, but I thought I'd share my impressions!
We're not really that kind of product company; we're more of a services company. What we do is deploy Kubernetes clusters onto bare metal servers. That's the core technical offering. However, everything beyond that is somewhat per-client. Some clients need a lot of compute. Some clients need a custom object storage cluster. Some clients need a lot of high-speed internal networking. Which is why we prefer to have a call to figure out specifically what your needs are. But I can also see how this isn't necessarily satisfying if you're used to just grabbing the API docs and having a look around.
What we will do is take your company's software stack and migrate it off AWS/Azure/Google and deploy it onto our new infrastructure. We will then become (or work with) your DevOps team to supporting you. This can be anything from containerising workloads to diagnosing performance issues to deploying a new multi-region Postgres cluster. Whatever you need done on your hardware that we feel we can reasonably support. We are the ones on-call should NATS fall over at 4am.
Your team also has full access to the Kubernetes cluster to deploy to as you wish.
I think the pricing page is the most concrete thing on our website, and it is entirely accurate. If you were to phone us and say, "I want that exact hardware," we would do it for you. But the real value we also offer is in the DevOps support we provide, actually doing the migration up-front (at our own cost), and being there working with your team every week.
In my current job, I think we're honestly a bit past the phase where I would want to take on a migration to a service like yours. We already have a good team of infrastructure folks running our cloud infrastructure, and we have accepted the lock-in of various AWS managed services. So the high-touch devops support doesn't sound that useful to me (we already have people who are good at this), and replacing all the locked-in components seems unlikely to have good ROI. I think we'd be more likely to go straight to #3 if we decided to take that on to save money.
But I'll probably be a founder or early employee at a new startup again someday, and I'm intrigued by your offering from that perspective. But it seems pretty clear to me that I shouldn't call you up on day 1, because I'm going to be nowhere near $5k a month, and I want to move faster than calling someone up to talk about my needs. I want to self-serve a small amount of usage, and cloud services seem really great for that. But this is how they get you! Once you've started with a particular cloud service, it's always easiest to take on more lock-in.
At some point between these two situations, though, I can see where your offering would be great. But the decision point isn't all that clear to me. In my experience, by the time you start looking at your AWS bill and thinking "crap, that seems pretty expensive", you have better things to do than an infrastructure migration, and you have taken on some lock-in.
I do like the idea of high-touch services to solve the breaking-the-lock-in challenge! I'll certainly keep this in mind next time I find myself in this middle ground where the cloud starts feeling more expensive than it's worth, but we don't want to go straight to #3.
Unfortunately, (successful) startups can quickly get trapped into this option. If they're growing fast, everyone on the board will ask why you'd move to another option at the first place. The cloud becomes a very deep local minimum that's hard to get out off.
It works because bare metal is about 10% the cost of cloud, and our value-add is in 1) creating a resilient platform on top of that, 2) supporting it, 3) being on-call, and 4) being or supporting your DevOps team.
This starts with us providing a Kubernetes cluster which we manage, but we also take responsibility for the services run on it. If you want Postgres, Redis, Clickhouse, NATS, etc, we'll deploy it and be SLA-on-call for any issues.
If you don't want to deal with Kubernetes then you don't have to. Just have your software engineers hand us the software and we'll handle deployment.
Everything is deployed on open source tooling, you have access to all the configuration for the services we deploy. You have server root access. If you want to leave you can do.
Our customers have full root access, and our engineers (myself included) are in a Slack channel with you engineers.
And, FWIW, it doesn't have to be Hetzner. We can colocate or use other providers, but Hetzner offer excellent bang-per-buck.
Edit: And all this is included in the cluster price, which comes out cheaper than the same hardware on the major cloud providers
You're a brave DevOps team. That would cause a lot of friction in my experience, since people with root or other administrative privileges do naughty things, but others are getting called in on Saturday afternoon.
We rent hardware and also some VPS, as well as use AWS for cheap things such as S3 fronted with Cloudflare, and SES for priority emails.
We have other services we pay for, such as AI content detection, disposable email detection, a small postal email server, and more.
We're only a small business, so having predictable monthly costs is vital.
Our servers are far from maxed out, and we process ~4 million dynamic page and API requests per day.
The core services are cheap. S3 is cheap. Dynamo is cheap. Lambda is exceedingly cheap. Not understanding these services on their own terms and failing to read the documentation can lead one to use them in highly inefficient ways.
The "cloud" isn't just "another type of server." It's another type of /service/. Every costly stack I've seen fails to accept this truth.
https://docs.hetzner.com/cloud/technical-details/faq/#what-k...
> Buy and colocate the hardware yourself – Certainly the cheapest option if you have the skills
back then this type of "skill" was abundant. You could easily get sysadmin contractors who would take a drive down to the data-center (probably rented facilities in a real-estate that belonged to a bank or insurance) to exchange some disks that died for some reason. such a person was full stack in a sense that they covered backups, networking, firewalls, and knew how to source hardware.
the argument was that this was too expensive and the cloud was better. so hundreds of thousands of SME's embraced the cloud - most of them never needed Google-type of scale, but got sucked into the "recurring revenue" grift that is SaaS.
If you opposed this mentality you were basically saying "we as a company will never scale this much" which was at best "toxic" and at worst "career-ending".
The thing is these ancient skills still exist. And most orgs simply do not need AWS type of scale. European orgs would do well to revisit these basic ideas. And Hetzner or Lithus would be a much more natural (and honest) fit for these companies.
Even some really old (2000s-era) junk I found in a cupboard at work was all hot-swap drives.
But more realistically in this case, you tell the data centre "remote hands" person that a new HDD will arrive next-day from Dell, and it's to go in server XYZ in rack V-U at drive position T. This may well be a free service, assuming normal failure rates.
Remote hands is a thing indeed. Servers also tend to be mostly pre-built now days by server retailers, even when buying more custom made ones like servermicro where you pick each component. There isn't that many parts to a generic server purchase. Its a chassi, motherboard, cpu, memory, and disks. PSU tend to be determined by the motherboard/chassi choice, same with disk backplanes/raid/ipmi/network/cables/ventilation/shrouds. The biggest work is in doing the correct purchase, not in the assembly. Once delivered you put on the rails, install any additional item not pre-built, put it in the rack and plug in the cables.
It baffles me that my career trajectory somehow managed to insulate me from ever having to deal with the cloud, while such esoteric skills as swapping a hot swap disk or racking and cabling a new blade chassis are apparently on the order of finding a COBOL developer now. Really?
I can promise you that large financial institutions still have datacenters. Many, many, many datacenters!
Software development isn't a typical SME however. Mike's Fish and Chips will not buy a server and that's fine.
plus, infra flexibility removes random constraints that e.g. Cloudflare Workers have
Reality is these days you just boot a basic image that runs containers
[0] Longer list here: https://github.com/alexellis/awesome-baremetal