[tinco]

I fully agree that this is how it could, and perhaps should be done. But you assume they are already on cloud hosting, which they obviously aren't. Ofcourse this is also a choice that has to be made consciously. Especially since fogcreek has been around a lot longer than the big cloud providers.

You can look to Amazon to see that cloud architecture brings with it hidden complexity that also increases risk of downtime while you relinguish a lot of control on for example the latency and bandwidth between your nodes.

What I don't know by the way, is wether the total cost of ownership is larger for colocation or for cloud hosting.