Earlier quoted context omitted.
I think people need to make a conscious tradeoff between ~5x AWS cost compared to rented server vs. OPS costs. Some startups (A) I work with have basically no OPS costs beyond setup, integrating Docker deployements and getting automatic backup working. Most simple technology just works and devs easily can do operations. The largest pain point still is VPN. Machines today are very very fast and load of many startups i…
I managed a metal to AWS transition, and 5x definitely doesn't match the costs I experienced (in this specific case, it was around the lines of 1.2x). I don't mean this case to be universal, in particular, I think cloud services force applications to have a particularly good/modular design (which is a cost in itself) - where, with metal, as you wrote, you can relatively cheaply overprovision. I think the analysis you…
From what did you transition to what? 20% sounds like a very small markup, from my experience and from other people experiences documented on the web it's much much larger (at 10x?) than your experience.
So I would be rather interested in more details as many people ask me about Amazon transitioning, and 20% markup would be killer.
"Some typical network/infrastructure elements, in particular firewalling, load balancing, and network management don't necessarily belong to the "rocket science" type of application;"
I surely do not know your demands, but firewalling, load balanicng etc. looks rather easy to me today for everyone except Google, Amazon, LinkedIn, AirBnB and 99% of startups are not one of these.
"I'm very skeptical for example, that the 5x figure includes hardware for the above network equipment and management."
Not sure what you are using, the hardware would be around $40 per month for that kind of network architecture (FW,HAProxy,Nginx,...).
In my last job we had large NetScalers which where much more powerful then HAProxy/Nginx on a rented server, and I assume AWS is as powerful, but for most of my clients this would be huge overkill.