better insights
Earlier today, GigaOM published a cost comparison of self-hosting vs. hosting on AWS. I wanted to bring to your attention a few quick issues that we saw with this analysis:
Lower Costs in Other AWS Regions - The comparison used the AWS costs for the US West (San Francisco) Region, ignoring the fact that EC2 pricing in the US East (Northern Virginia) and US West (Oregon) is lower ($0.76 vs. $0.68 for On-Demand Extra Large Instances).
Three Year Reserved Instances - The comparison used one year Reserved Instances, but a three year amortization schedule for the self-hosted hardware. You save over 22% by using three year Reserved Instances instead of one year Reserved Instances, and the comparison is closer to apples-to-apples.
High Utilization Reserved Instances - The comparison used a combination of Medium Utilization Reserved Instances and On-Demand Instances. Given the predictable traffic pattern in the original post, a blend of High and Low Utilization Reserved Instances would reduce your costs, and still give you the flexibility to easily scale up and scale down that you don't get with traditional hosting.
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Amazon Web Services (AWS), as the trailblazing provider of Infrastructure as a Service (IaaS), has changed the dialog about computing infrastructure. Today, instead of simply assuming that you’ll be buying and operating your own servers, storage and networking, AWS is always an option to consider, and for many new businesses, it’s simply the default choice.... more
http://gigaom.com/2012/02/11/which-is-less-expensive-amazon-or-self-hosted/
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