| I'm in the midst of returning from the cloud to coloc. It's looking like for about $50K in hardware I get x10 the ram/compute/storage/(internal) network I get from the cloud at around $10K/mo. However, it is taking me about $25K in labor to setup. Hosting costs about $1K for a rack and a decent pipe to the server. So more than a hobby but not approaching real scale. The main barrier to using a lambda model is if you have anything that smacks of a DB. It would take me $100K+ to transition away from SQL. If you can do lambda w/o a big retool cost, then it is probably viable. If you are just running a bunch of VMs on the cloud, it is pretty expensive. ... Interestingly, my main client (a very large company) just went the other direction and moved all its compute to a system that is Spark underneath running on Azure. They are trying to decommission some expensive TerraData instances. So far, it is a mixed bag -- it is a big step forward (for them) on anything that is 'batch-oriented' but 'interactive' performance is dismal. Price appears to be a big motivation. I always forget that most large enterprises run on exotic stuff with crazy service contracts that makes the cloud look cheap. |
Don't forget the second factor of (not having) the workforce. Physical servers require a bunch of suckers who know physical infrastructure and accept to be oncall 24/7 and deal with DELL/HP/colo full time on top of periodic travels to the datacenter.