

Cost comparison between Cloud Datacenter and enterprise hosting (infographic) - ManuJ
http://www.getapp.com/blog/the-cloud-needs-massive-data-centers-a-cost-comparison-with-traditional-enterprise-hosting/

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jellicle
Okay, but there are actually TWO factors at play here, not just one.

The linked article intimates that efficiency and technology reduces costs in
the "cloud" datacenter, to the point of costs being 1/5th of a "regular"
datacenter. I don't doubt that if you have the latest, fanciest tech, you can
save some money.

But the flip side is a reduced staffing ratio and hidden systemic risk. Amazon
employs fewer sysadmins per server than your "regular" datacenter would. That
saves money when things go well, and it means there aren't enough sysadmins to
fix things quickly when the excrement hits the air circulation device. That's
a hidden systemic risk factor that you should be taking into account - but you
aren't. It's really exactly like finance. If the risk-free rate is 3%, and
someone tells you that they can get you 6% with no risk, _they're lying_.
There's risk being hidden somewhere that isn't apparent to you.

