I can't support point 7. enough. People often forget about the cost of labor.
We migrated our company webapp to Heroku last year. We pay about 8 times what a dedicated server would cost, even though a dedicated server would do the job just fine. And often times, people tell me "Heroku is so expensive, why don't you do it yourself? Why pay twice the price of AWS for a VM?"
But the Heroku servers are auto-patched, I get HA without any extra work, the firewall is setup automatically, I can scale up or down as needed for load testing, I get some metrics out of the box, easy access to addons with a single bill, I can upgrade my app language version as needed, I can combine multiple buildpacks to take care of all the components in our stack, build artifacts are cached the right way, it integrates with our CI tool, etc, etc.
If I had to do all of this by hand, I would spend hours, which would cost my company way more. In fact, I'd probably need to setup a Kubernetes cluster if I wanted similar flexibility. By that point, I'd probably be working full-time on devops.
Once you factor in the learning time for AWS per a developer the cost is even higher.
At my previous company we had project with an AWS deploy process that only two developers could confidently use. Teaching a new developer & keeping them up to date was a big time sink.
For comparison we had a Rails app setup on heroku that on day one junior devs were happily deploying to (plus we had Review apps for each PR!)
This is a good point. Expecting developers to understand how to configure service to service IAM permissions and all the other nuances of AWS infrastructure is a fool's errand. Also one of the reasons we started Stackery.
I'm curious. Did you look into Googles AppEngine? It seems to have a lot of the benefits that Heroku offers, but is much cheaper.
Granted that it does impose some limitations, and therefore isn't right for all apps. But it does seem like it would work for a large percentage of web apps and REST api's.
The cost you're talking about is really hard to measure. Were they able to reduce the team sizes and get rid of positions after the change? Did the payroll reduce at all?
We migrated our company webapp to Heroku last year. We pay about 8 times what a dedicated server would cost, even though a dedicated server would do the job just fine. And often times, people tell me "Heroku is so expensive, why don't you do it yourself? Why pay twice the price of AWS for a VM?"
But the Heroku servers are auto-patched, I get HA without any extra work, the firewall is setup automatically, I can scale up or down as needed for load testing, I get some metrics out of the box, easy access to addons with a single bill, I can upgrade my app language version as needed, I can combine multiple buildpacks to take care of all the components in our stack, build artifacts are cached the right way, it integrates with our CI tool, etc, etc.
If I had to do all of this by hand, I would spend hours, which would cost my company way more. In fact, I'd probably need to setup a Kubernetes cluster if I wanted similar flexibility. By that point, I'd probably be working full-time on devops.