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I agree with the calculation in the article for applications that have "shared state". However, if you are doing something that is a bit more amenable to the cloud, like serving assets or processing email then the calculation is very different.

The real killer in the calculation is in the assumption of a uniform distribution cycle. Any service that can break away from that looks very different. If you serve static video files, for example, you cannot hope to match the geo-distributed service AWS Cloudfront offers unless you are huge.

A smart mix of colo and cloud is the way to go for medium sized businesses.




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