> The hosting cost for things like Facebook and Twitter are a pittance compared to the cost of employing all of the engineers/designers/etc who enhance and maintain those services.
Facebook had $20.4 billion in operating expenses in 2017. Less than 1/3 of that was the cost of its 25,000 employees (at the end of 2017). Facebook is spending more on its infrastructure than it is on all of its employees combined (and that much more when you reduce it to just engineers). Engineers are maybe 1/5 of its operating costs, including their all-in costs.
Both Facebook and Alphabet had roughly $15 billion in total capex for 2017. Data centers, networks, electricity, et al. cost a lot at that scale. It's not a pittance. Facebook spent ~$7 billion in 2017 on capital expenditures related to their network, data centers, etc.
Facebook's first Asia data center is a billion dollars to just start up.[1] When they put up new data centers in places like Henrico County VA, New Albany OH, or Newton County GA, it's similarly nearly a billion dollars a shot to start those up. Once you have dozens of those operating, it's billions of dollars per year to operate them all.
[1] https://money.cnn.com/2018/09/06/technology/facebook-singapo...