>cost of 2 hardware admins 160k/year This is by far the most expensive item in your estimate, and I'm sure that you don't suddenly need to hire another pair of

>cost of 2 hardware admins 160k/year This is by far the most expensive item in your estimate, and I'm sure that you don't suddenly need to hire another pair of admins when you buy a single Xeon blade. Once you factor this fact in your estimates, you'll realise that the unit cost of each server is, unlike your estimate, negligible.