I bought a similar setup for a similar purpose a long time ago and unless you want to offer custom ffmpeg encoding beyond what Zencoder / AWS / TransloadIt offe

I bought a similar setup for a similar purpose a long time ago and unless you want to offer custom ffmpeg encoding beyond what Zencoder / AWS / TransloadIt offer my advice would be to use them instead. If you really want to; I still have a 4x 3GHz Xeon server with 48Gb of memory and 8 450Gb 3k-RPM SAS drives in RAID-6 running in a colo. You're more than welcome to take it off my hands. I don't think it's load ever got above a few % :)