Earlier quoted context omitted.
Sure it can, but can building and administering your own solution compete with a TCO less than S3's $0.14/GB with a 99.99% availability?
Of course it can, given how many useful open source solutions are available nowadays. Considering the total cost of 6000$ for a single server, you would be dropping 12k from the get-go for two servers (though you should really lease over a 12 month period if you can't afford it) and then you need to add colo costs for the machines, which can be around 300-400$ per machine in a single unit colocation environment, depe…
Also, less than 99.9% of sysadmins are worth their salt, are you sure yours is?