> The markup cost of using RDS (or any managed database) is worth it. Every so often I price out RDS to replace our colocated SQL Server cluster and it's so unrealistically expensive that I just have to laugh. It's absurdly far beyond what I'd be willing to pay. The markup is enough to pay for the colocation rack, the AWS Direct Connects, the servers, the SAN, the SQL Server licenses, the maintenance contracts, and a…
For big companies such as banks this cost comparison is not as straight forward. They have whole data centres just sitting there for disaster recovery. They periodically do switchovers to test DR. All of this expense goes away when they migrate to cloud.
They need to replicate everything in multiple availability zones, which is going to be more expensive than replicating data centres.
They still need to test their cloud infrastracuture works.