Depending on your service provider (hosting, msp, mttos, whatever), the up-front msa can be truly painful if you want "real" service. I.e., redundant power and

Depending on your service provider (hosting, msp, mttos, whatever), the up-front msa can be truly painful if you want "real" service. I.e., redundant power and multi-provider network connectivity with multiple connectivity points that have a massive capital cost but will be as reliable as your commercial or home utilities. Couple the cost of establishing the relationship (especially with startup credit) with the NRC and MRC of hosting services, smart hands rates, reserved cabinet or cage space for those surprise boxes on the dock, and incremental pricing models, and it's very difficult to build out and manage poorly predicted growth in a financially constrained environment. Saving money on this means you're allocating additional engineer hours to dealing with this yourself. The 'middle road' is probably an operator in a decent NAP or superNAP that manages the big lease and then carves out a margin by offering smaller space, possibly even colocating your hardware in the same rack as someone else's (and maybe not in the same rack with your other gear), and charging more than a macminicolo but offering significantly improved and variable services. There are a number of walls you can hit that will present themselves as an almost insurmountable obstacle when you own your own gear. There are mandatory professional services when setting up some gear (SAN vendors have been notorious for this) and it's just a bunch of attention you have to devote to something for which there is generally a good enough solution for a company that may not exist long enough to depreciate the servers that ate a huge amount of their startup capital. It's not that we're 'afraid' of computers. It's like saying we were afraid of electricity or telephone lines 40 years ago. We can manage it, but it's almost irresponsible and risky to do so.