writing as somebody who runs a big collection of bare-metal hypervisors for ISP infrastructure purposes... this post quite honestly just makes me smirk. I have truly lost track of the numerous instances, and number of people who would be better served by buying a $1200 test/development 1U dual socket server with a few fast SSDs in it, and putting it in colocation somewhere for a few hundred dollars a month. The costs…
First, that $1200 server costs fixed money upfront, and then you pay per month for colo, and for internet, which usually includes a fixed bandwith cap or limits, with bursts which you pay for. So no, it's not fixed.
Second, a server you have to maintain, harwdare and software-wise, is much more complex, and takes much more time, than a managed service. You want a database? Install it yourself, maintain it yourself, backup it yourself, monitor it yourself. And same with everything else.
Third, there's zero redundancy in your "setup". If you want it with the most basic redundancy, you triple the costs (second server, extra networking equipment, etc.).
Fourth, geo redundancy/distributedness? Please. Good luck if you have someone far away who wants to visit your site.
Fifth, let's say you need to scale. Like, you get 10 more users today than you did yesterday, or you get featured on HN or Reddit or local news or whatever. F. You're looking at months and a lot of cash, upfront.
"A big collection of bare-metal hypervisors" makes sense in some cases, but don't pretend it doesn't come with a non-negligible time spent maintaning it and requires significant upfront capital and man hours to do the same you get easily on a public cloud platform (databases, message brokers, object storage, etc. etc . etc. etc. etc. etc.).