Earlier quoted context omitted.
Or if you are a team like mine that develops/manages 200 servers, 15 RDS database instances, 500 TB of compressed S3 data, and provides accessibility to all of that through API's with only 5 developers because of how easy AWS makes it for us. While our server costs are probably higher than going bare metal, how many developers would it take you to manage all of that on bare metal hosts?
The expense of one's outlay to Amazon is not a persuasive statistic. It only shows that you have a lot of incentive to keep confirmation bias in gear. AWS is specifically designed to maximize instance count (that is, cost). The reason "devops" has exploded since EC2 hit critical mass is that before EC2, people were reasonable with the number of servers they needed. With EC2, it's all water, and it's so easy to press…
I'm pretty new to the backend design cost/benefit (have only used AWS since I graduated college) but I'm curious to here about bare metal storage solutions for 500 TB of compressed json as I have not read any compelling solutions for that data requirement (Outside of MongoDB but I have heard good and bad things about that).