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It's even cheaper if you build your servers yourself and colocate them at a datacenter. Of course, not every company has a sysadmin, but if you do, you will save a bundle. This also means supporting them yourself, though, which at times can suck a fat one. At Clicky, we have almost 30 servers, all of which we built ourselves. Up front cost is about $1500 per server, and monthly cost is $75 each. If we were leasing servers of similar capacity (RAID, 8GB+ RAM each) they would cost us a minimum of $400 per server per month, which would total close to $12,000 per month. By doing stuff ourselves we instead pay around $3500 per month (~$2000 hosting, and approx. 1 new server installed per month). That's serious money in the bank. I'm not counting sysadmin salary in that figure though, because I am the sysadmin. Still, if you have the capability, it's worth it. |
I think your accounting technique needs to be refined.
The time which you routinely spend each month, setting up and updating these systems, is a cost.
When a system goes down and you must drop whatever you're doing to fix it, that context switch is an additional cost. Especially if it costs you a night's sleep. You might lose days of productivity on your regular job.
When something happens that you didn't foresee, and that you have no experience with -- you are, after all, only a part-time sysadmin, not a professional cloud administrator -- and you have to spend days reading manuals and nagging Dell vendors on the phone, that's a cost. One that is easy to overlook in advance (who likes to sit around, dreaming up the improbable but scary ways that your systems might fail?) but which is very real when averaged over time.
And when you get tired of playing sysadmin in your spare time and decide to stop -- perhaps by quitting your job -- replacing you is going to cost your company a fortune, especially if they end up hiring the wrong person, who accidentally corrupts two years' worth of backups and then drops the main database. The thing about paying (e.g.) Amazon is that it isn't just a way of hiring a competent part-time sysadmin. It's also an algorithm for hiring a series of future part-time sysadmins: As long as you keep paying Amazon, they will probably keep finding and hiring the right people. (They are, after all, more experienced at finding good sysadmins than you are.) Or, if they fail at that task, perhaps one of their thousands of other customers will discover that fact before you have to, and you'll hear the news early enough to make a clean and event-free migration to another provider.