Re: On-prem obviously cheaper than cloud hosting
Because there aren't enough turtles to keep going all the way down?
More seriously, it's a question of scale. If building and managing a single Server Room costs $X, Building and managing a Bit Barn containing the equivalent of 100,000 Server Rooms does not cost 100,000x $X. Probably closer to 10,000x $X.
Therefore, it can be cheaper to hire 1 Server Room from the bit barn then to build your own. BUT, as with all things, the Bit Barn is there to make money and so you wont hire your server room for the 10% of what it would cost to build your own, the price will normally be set in such a way that it is just cheaper than building your own, but no so much so that it costs the Bit Barn profit. Hell often the price is about the same or even more expensive, but not so much so that your tempted to go and build your own...
Biting the hand that feeds IT
