[mpchlets]

It seems to me that this post is missing the advantages of Cloud Computing (AWS) and the Cloud Ecosystem. The Cloud is not less expensive than physical servers - it is different and a different beast. You have flexibility and a different toolset, as well the ability to start a new server without procurement. As well, it completely disregards some of the advantages of physical servers, including in-box IO (disk) needs. Clouds have not been good in the past for high-IO apps. As well, you get more control at the expense of flexibility.

Overall - the determination of Cloud vs Physical should not be based solely on Price but needs and overall Ecosystem that you want to participate in.

Not to mention, as an independent consultant and developer, the ability to spin up a new server to play with any time is invaluable.