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Long term is unknown to the startup , they may fail or pivot . Buying upfront hardware is not feasible even if I had the cash(which most don't), I don't know i

Long term is unknown to the startup , they may fail or pivot . Buying upfront hardware is not feasible even if I had the cash(which most don't), I don't know if the company would last that long or would be doing things that require x servers . What you are saying is similar to saying may be it is cheaper to buy the building /floor instead of renting space for office. - most small biz cannot afford do that, or expect their business to change (fail/take off) in the time frame ROI would come to take that commitment. This is all assuming that a the startup has skill in setting up and managing physical servers and there is no opportunity costs( delayed features) on doing so, both are not a given. small companies ( and poor people) typically don't buy low quality stuff or buy into rent seeking business models because they are dumb it is usually because they cannot afford to do long term thinking.

doublerabbit 5y ago
> Buying upfront hardware is not feasible even if I had the cash(which most don't) You only need one server, slap on a hypervisor and your rocking. Heck you can buy entry servers from dell for budget; upgrade later. A 10u rack, which is adequate for any small business comes to around $500 a month in LA. 4u would be more than enough for a startup and that's around $200/month. Is the start-up not going to purchase computer hardware, monitors, television screens for their clients when they sit in the waiting room? Email accounts with Office365, a website, a domain name? If they can fit that in to their budget I am pretty sure they could afford a server and colocation space. > What you are saying is similar to saying may be it is cheaper to buy the building /floor instead of renting space for office. - most small biz cannot afford do that, or expect their business to change (fail/take off) in the time frame ROI would come to take that commitment. But colocation is dynamic. Contracts can be negotiated. > buy into rent seeking business models And AWS isn't a rent seeking business model? Looking at EC2 instances, for 120GBHD, 32 cores "Dedicated" instance, your looking at 679.54 USD for a month. 120GB isn't much especially when the developers start doing their thing. For $500 you can have so much more, and hardware you actually own and that if the company does not lift off it can then be sold. Is that not the better investment? No remarks to lack of skills.

doublerabbit 5y ago

> Buying upfront hardware is not feasible even if I had the cash(which most don't) You only need one server, slap on a hypervisor and your rocking. Heck you can buy entry servers from dell for budget; upgrade later. A 10u rack, which is adequate for any small business comes to around $500 a month in LA. 4u would be more than enough for a startup and that's around $200/month. Is the start-up not going to purchase computer hardware, monitors, television screens for their clients when they sit in the waiting room? Email accounts with Office365, a website, a domain name? If they can fit that in to their budget I am pretty sure they could afford a server and colocation space. > What you are saying is similar to saying may be it is cheaper to buy the building /floor instead of renting space for office. - most small biz cannot afford do that, or expect their business to change (fail/take off) in the time frame ROI would come to take that commitment. But colocation is dynamic. Contracts can be negotiated. > buy into rent seeking business models And AWS isn't a rent seeking business model? Looking at EC2 instances, for 120GBHD, 32 cores "Dedicated" instance, your looking at 679.54 USD for a month. 120GB isn't much especially when the developers start doing their thing. For $500 you can have so much more, and hardware you actually own and that if the company does not lift off it can then be sold. Is that not the better investment? No remarks to lack of skills.