[ai_ja_nai]

> Why should that be so? I'd expect the all-in cost of a cloud machine to be less than my own hardware

Because cloud hardware doesn't have all the burdens of physically managing a real server. Replacing SSDs. Upgrading RAM. Logging to a iDRAC to restart a crashed server. All those things don't exist in the cloud and make you loose so much operational time. That's why clouds will ALWAYS cost more than bare metal. The cons is that with cloud you keep paying for the same servers: there are no assets anymore, only costs.

[Corrado]

Not to mention keeping spare parts around for when something breaks, or having to drive out to the DC to fix/replace the thing that broke or won't restart. Hell, even something "simple" like managing the warranties for the gear you have is no fun at all. People tend to forget all those little things when espousing the evils of the cloud, but I'm here to tell you that they all add up and they are all a major pain in the butt. Cloud gets rid of all that.

[0x500x79]

There are also discussions around CapEX versus OpEx that apply here, and depreciating costs over time. There is a trade-off of agility, cost, and maintenance, but the markup on cloud is quite high.