Myth Busters: Ops edition. Is EC2 is less expensive then running your own gear?
A buddy of mine and I were trying to figure out how much better ground computing is then cloud computing. We determined our typical hadoop machine is about equal to an extra large instance. We have a cluster of 20 of these machines. 2x quad socked processors, 32GB RAM, 8x 2TB disks
Here are some numbers:
20 x extra large instances 12 hours of usage per day on one year term.
Its like you have to pay about 80K upfront and about 5K a month. So in a year its going to be about 140K -150K (without any storage)
Now If i was to run these servers in my data-center :
20 servers = about 150K (upfront cost)
Rack and power = about 2K a month
Total expenses in year one about 175K about 25-35K more from AWS - looks bad, huh?
but.... With our own hardware
Free storage about 400TB (Raw)
Cluster available 24 hours
After first year cost is only 2K a month (24k/year) and all the hardware is free.
I went ahead for 3 year comparison:
$126K upfront for AWS and about 5K a month = 186K for first year
120K for next two year
total needs to be paid to AWS = 126+120 = 246K
If i were to put this in my own datacenter i'd pay:
150K upfront and 2K a month = about 175K for first year
48K for next two year
total expenses = 223K
free storage about 400TB (Raw)
cluster available 24 hours a day
I still have those 3 year old machine maybe someone will buy them for 10K? :)
BTW - I'm not too sure how to calculate $$$ for storage in AWS yet, but when I do it its come to about 585K a month - assuming that you want to keep all the data in AWS...
Myth Busted? Absolutely busted to heck.