Facebook's CTO thinks the opposite or perhaps even alike. IMHO, a startup should not start with dedicated, but perhaps when you get to a certain size, perhaps, dedicated hardware, team and bandwidth is the way to go. Just like you will not have a dedicated chef to cook your meal at start, but rather outsource meals, etc. -- http://www.bbc.co.uk/news/business-12406171 What's the biggest technology mistake you've ever…
In my experience, the highest operational cost with running services is managing the application itself - deployment, scaling, and troubleshooting. None of that goes away with the cloud.