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I have dedicated servers for my website. Many hosting companies will charge about €30 / month for a server like this:

  • CPU: i3 @3.4GHz
  • RAM: 8GB
  • HDD: 2x 1TB

Comparing this to a cloud configuration (for example PagodaBox), if you set the RAM to as low as 1GB per instance with a single instance you get a price of 100USD / month.

I don't understand why this is. I know that with a cloud you can easily scale your application, but for this price I don't think it's worth the price. Even stackoverflow has its own dedicated servers.

Do you think these prices are worth the advantages of the cloud?

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It really depends on what you are trying to accomplish. Cloud is not cheap, true. But the fact you can easily deploy and scale makes it sometimes the better solution.

For example one of my clients rented his own rack for several thousand dollars per month and he had to go for a pretty pricey CDN to deliver his content worldwide. The switch to a cloud hosting solution not only cut his hosting costs by half, he also didn't need the CDN for worldwide distribution.

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