Charlie Oppenheimer or Matrix Partners, posting in GigaOM over the weekend, analyzed Amazon versus self-hosting cost scenarios, complete with spreadsheet models:
I’ve long had an instinct that the economics of the choice between self-hosted and cloud provider had more texture to it than the patently attractive sounding “10 cents an hour,” particularly as a function of demand distribution.
The response from the AWS Blog? Be Careful When Comparing AWS Costs…
These analyses are always tricky to do and you always need to make apples-to-apples cost comparisons and the benefits associated with each approach. We’re always happy to work with those wanting to get in to the details of these analyses; we continue to focus on lowering infrastructure costs and we’re far from being done.