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There's a lot more that goes into the decision than service costs. There are lots of other costs that must be considered. E.g. if using AWS can save you one employee, that alone might make it worth the extra service costs.

I'm not saying you're wrong, just that your analysis is incomplete.

I'm sure there's a situation where AWS saves money on TCO. If you ever find it, please let us know.

Umm, does linode offer higher level services like SQS, Lambda, SWF and friends?

Their open source alternatives running on Linux?

Because ops is free.

+ the cost of paying people to setup, deploy & manage these these things.

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