> it's orders of magnitude cheaper to colocate as long as you can afford an IT guy and the upfront cost of hardware.
It may be. But for many people, it does not matter.
Let's say you work at the place (I do) where "compute" cost is like ~0.5% of the total costs. Almost all of the cost is employee's salaries and benefits.
BTW we get (and from what I hear, everyone does) offers from other cloud vendors to switch, and get 1 year free or whatever. And it gets ignored because it is a big risk for a tiny possible gain.
Fair enough. I just think that infastructure is a bigger differentiator of success than most give it credit for. By using the cloud you're giving up the possible performance and money advantages of doing it yourself.
It's really just a new form of vertical integration. If you're working only at the high levels you're not only paying someone to do that rest for you, those people are making profit off of you. Profit that could be yours.
It may be. But for many people, it does not matter.
Let's say you work at the place (I do) where "compute" cost is like ~0.5% of the total costs. Almost all of the cost is employee's salaries and benefits.
BTW we get (and from what I hear, everyone does) offers from other cloud vendors to switch, and get 1 year free or whatever. And it gets ignored because it is a big risk for a tiny possible gain.