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Long term yes, it's cheaper to own than rent/lease. Renting/leasing is often more cash flow friendly in the short/near term (due to not needing large sums of i
by jrs235 13y ago
Long term yes, it's cheaper to own than rent/lease.
Renting/leasing is often more cash flow friendly in the short/near term (due to not needing large sums of initial investment and [in the U.S.] tax implications of OpEx vs CapEx expenditures)
If you're trying to preserve capital in a start-up situation renting/leasing is the way to go until you know what resources you actually need.
- noodle 13y agoIt's also risk mitigation. You can spin those AWS instances up and down smoothly depending on your needs. You can't get rid of a 1+ year lease agreement, or something that you purchased. Nor is it a good idea to buy/lease more quickly without really thinking about the long-term financials.
- toomuchtodo 13y agoYES. Once the business fundamentals (profitability/cost savings), load profile, and your team's skills can support physical infrastructure, it makes sense to do so. Until then, virtualize!
- nasalgoat 13y agoUnless you're running spot instances, that logic doesn't work.
- noodle 13y agoCould you elaborate on this?
- nasalgoat 13y agoReserved instances are paid for a full year.
- noodle 13y ago1) There's a difference between on-demand and spot instances. 2) Well... yes. My entire premise is based upon not making any long-term leases/purchases, as I stated. Hence, if you bought a 1 year reserved instance, you're doing long-term leasing, and therefore your situation doesn't fall into what I was discussing. So, I'm not sure what your point is.
- 1qaz2wsx3edc 13y agoI beg to differ, in that the article doesn't consider the cost-benefit around the effort required to run them. Running your own hardware will cost significantly more time to manage than the latter, in my opinion.
- nasalgoat 13y agoOr you lease to own the hardware. Best of both worlds.