The cloud became the new hot thing and lots and lots of people, sites, enterprises jumped on board. Need to quickly deploy code without any understanding of how infrastructure works? Great, the cloud solves your problem! Who needs experienced infrastructure people anyway? Need to quickly respond to a spike in traffic? Great, the cloud solves your problem! Need guaranteed SLAs, reliable CPU, memory and disk performanc…
co-lo: 1x cost managed: 1.5-2x cost cloud: 2.25-4x cost
This was with headcount changes figured into the pricing. (We did not see a head count reduction when using EC2)
The primary advantage the cloud offered was that it was an operating expense without a contract, and that you could turn systems off when not used.