I’ve been doing infrastructure for 27 years.
Around a dozen years ago, my business was designing building and supporting physical infrastructure for startups.
One company was humming along nicely on $4000 of used hardware and a $2000 a month cage in a Colo facility.
Their business had ramped up and got some funding, so we got them another 60k worth of hardware in nother facility.
They onboarded still more customers to where they needed a few thousand dollars worth of SSDs to keep up with their random io demands.
But their new VC-installed CTO was like… No! We spent all this money on hardware and it’s not doing what we need it to! That’s crap! We’re gonna move to the cloud and save money.
So they moved to Amazon.
Their first month’s bill was $50,000. And it only went up from there.
The cloud is dandy for small workloads. But where you’ve got a consistently large workload the break even point on owning your hardware is a lot lower than most people think, even factoring in infra management expenses.