Comment by nzach

> developers have gone away from Dedicated servers (which are actually cheaper, go figure)

It depends on how you calculate your cost. If you only include the physical infrastructure having a dedicated server is cheaper. But by having some dedicated server you loose a lot of flexibility. Needs more resources? Just scale up your ec2, and with a dedicated server there is a lot more work involved.

Do you want a 'production-ready' database? With AWS you can just click a few buttons and have a RDS ready to use. To roll out your own PG installation you need someone with a lot of knowledge(how to configure replication? backups? updates? ...).

So if you include salaries in the calculation the result changes a lot. And even if you already have some experts in your payroll by putting them to work in deploying a PG instance you won't be able to use them to build other things that may generate more value to you business than the premium you pay to AWS.