That's just it though.

I own all of my hardware outright, so the only costs at the moment for
us is the data centre costs which current is a little over 2k a month
and includes 100 Gb of data. I have full control of security,
firewalls, the servers, environments and if needed i can walk up to
the server, plug a USB drive in and either do backups or transfer
large amounts of data to my servers.  I have a full rack available to
me and i agree that if i was looking to expand, then the cost of
hardware will be more than a new instance in the cloud.

Looking at the figures starting out fresh, the TCO is much higher with
the typical data centre infrastructure on a hardware level and
possible hardware maintenance level but the ongoing costs of a cloud
seems to be just as high or higher than traditional data center
services for running systems.

Yes cloud scaling is nice but when then ongoing costs of basic
infrastructure ends up  being more what would be the compelling
argument to move to a cloud?

Steve

On Sep 8, 11:43 am, Chong <kck...@gmail.com> wrote:
> I have an ex colleague that work projects uses EC2... how do you arrive at
> 450-500 per instance excluding data?
>
> With my discussions with him and a few others, it is very hard to estimate
> your actual usage till you get on it.
>
> For me the potential lies in
>
>    - Ability to exist beyond different regions (the likely hood of all the
>    datacenters going down in all the region is very very small)
>    - scalable (you can switch the instance type, and I also believe there is
>    the ability to create/increase capacity via code/conditions)
>    - Not needing to worry about hardware
>
> So for my understand so far, for you to get maximum benefit from EC2 is to
> architect the app/site  whereby it can exists between different "regions" ,
> know how to interface with EC2 to scale when needed... not needing to worry
> about hardware is common with any hosting provider, cloud or non cloud.
>
> Besides the fact that it is cheaper, due to scale of economics.
>
> Just my uneducated 2 cents :)

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