At some point, I'm going to guess that even moderately large AWS configurations would be better off getting a high capacity business FiOS line (or whatever the next tier is), get a couple racks full of home rolled high-end systems and staff 2 or 3 guys full time to run everything. The systems will be faster, probably about as reliable, everything will be cheaper even with extra people on payroll. I'd love to see some…
Me too. I suspect there's medium and longterm costs that probably skew my "gut feel" of how much cheaper that'd be. I wonder what the real costs associated with feeding a roomful of local servers replacement disks/ram/powersupplies are, and what a realistic replacement schedule for the hardware is? Sure AWS is expensive for 24/7/365 applications, but I suspect there's some "in between ground" where Amazon's economies…
(but it's still better to have a webserver on AWS, that simply 302s to your "real" services, or only provides a skeleton web page, though 302'ing is better, without it you'll quickly run into difficulties with same origin policy. 302 redirects will also change much faster than dns updates).