Comment by maxclark

There's places where it makes sense to be on the cloud, and places where it doesn't. The two best examples I can give are for high bandwidth, or heavy disk intensive applications.

Take Netflix. While almost everything is in the cloud the actual delivery of video is via their own hardware. Even at their size I doubt this business would be economically feasible if they were paying someone else for this.

Something I've seen often (some numbers changed because...)

20 PB Egress at $0.02/GB = $400,000/month

20 PB is roughly 67 Gbps 95th Percentile

It's not hard to find 100 Gbps flat rate for $5,000/month

Yes this is overly simplistic, and yes there's a ton more that goes into it than this. But the delta is significant.

For some companies $4,680,000/year doesn't move the needle, for others this could mean survival.