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I'm assuming you have the technical resources to manage your own hardware.

I've built a a lot co-lo solutions for clients. They end up being very expensive if you use a "name brand" provider. You are paying for rack space, power, A/C, security, bandwidth, etc, etc. And then anytime something breaks, you need to send somebody in to fix it. If the provider supplies "hands" then they charge heavily for that. Remote consoles are good, but not that good.

With so many providers out there, ranging from bare metal to VPS to PaaS - I find that hybrid solutions work the best. Not putting all your eggs in one basket, etc.

In my experience, the greater the lock-in the worse the service - of course YMMV. I tend towards pay-by-month and stay flexible. Whilst AWS is expensive if used continuously, I find it good for handling spikes. But you do need to architect you solution to move the workload around and that can end up being more bother than its worth.




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