“That’s a total of $840,000/year for everything. Bandwidth, power, and boxes on an amortization schedule of five years. Compared to $2.3m in the cloud.”
37signals spent $3.2m on cloud in 2022. About $600,000 of Dell hardware in racks it already rents replaces $2.3m a year of compute, with the same ops team. The 8PB sitting in S3 waits until 2024. The cloud was sold as cheaper than owning servers. For a steady mid-sized SaaS it’s a $1.5m a year tax.