security might be too much of a concern for some applications
Running a server at home is fraught with peril but if those downtimes are ok, then go for it.
You can also buy two.
I don't think so. AWS Lambda has a generous free tier and runs on infrastructure that has constant monitoring by professionals, spread across thousands of machines in multiple datacenters all over the world, with an SLA.
Your one (or two) servers that share a single consumer internet connection (with no SLA) will never be more reliable.
Yes, you can get more powerful, but again, that's a business decision you have to make. Do you want power or reliability? If uptime is important to your business, then running it at home off of consumer internet is not a good idea.
You need a backup plan for paid services too.
Was this a business or consumer account?
Do you only have one ISP?
Sure, CPUs are cheap and (if you’re lucky enough to live somewhere that’s offers it) consumer internet can be absurdly fast. But if youra app goes down at a critical moment because your consumer-grade ISP has an outage, or someone tripped over the Ethernet cable, or you had a brown out because you live in the UK and everyone put the kettle on at the same time, you’re going to look like a bit of an idiot.
I did all of this for my family's software company 20 years ago. We were serious about it, too: SDSL line (good at the time!) with an SLA, natural gas standby generator, redundant hardware... never again. I spent all my time futzing with infrastructure rather than producing any business value.
I did learn a ton, and that continues to be valuable (it surprises me how often I'm the only dev in the room that has experience configuring IP routing). But it's a huge time-sink, and I'd never consider doing it to save money (the amount of money saved would be marginal, at best).
Personally I’ve been using $3 Lightsail instances on AWS. There’s a lot you can do with one CPU and half a gig of RAM. An MVP Rails app will squeeze into that easily enough.
Step out of your Silicon Valley bubble and recognize that this doesn't apply to everyone.
I only have 30 megabit up/down with Frontier. I can get faster, but it gets expensive quick, and I don't need more than 30 mbps, even as a gamer. Xfinity only offers 150 megabit down in my neighborhood, with a puny 15 megabit up, and for twice the price.
And as others have mentioned, it creates a single point of failure and if you get hacked, your entire home network is compromised. The last thing you want to have happen is for some unsavory type to decide they don't like you or your services and DDoS your home internet connection. I've had it happen to me and it's not fun.
I worked on a startup, out of a dude’s house, he also owned the house next door.
I had three separate FiOS ONTs connected to the rackmount server in the living room.
Lots of live video streams.
The accounts were business, so when the gardener slices one of the fiber cables, it was fixed in a few hours, and the other ONT was still working.
My other buddy lives 2 hours away and has symmetric 1Gbps service for $50/mo in a rural area.
I would love to be able to have a symmetric connection.
* Electricity costs for networking/compute hardware often equal VPS costs
* Massive single points of failure WRT power, compute, networking
* ISPs don't like when people run their businesses over consumer networks and will retaliate (forced to change to business plan, account terminated, etc)
* Vastly increased overhead managing the full infra stack (power, HVAC, networking, compute, firmware, OS, etc)
* Massively increased security liability (your site goes viral and now Hacker News and Reddit are sending traffic to your house, on the same network where your personal laptop with your CC info saved on it lives)
XaaP services abstract away so very many of these concerns for prices that oftentimes are below what you pay for the electricity to run your own infrastructure.
I also remember downloading quite a bit of MP3s hosted on an SFTP server in a friend of friend’s dorm in Philadelphia.