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Exiting the Cloud to Save Money

David Heinemeier Hansson shares a story:

The back of the napkin math is that we’ll save at least $1.5 million per year by owning our own hardware rather than renting it from Amazon. And crucially, we’ve been able to do this without changing the size of the operations team at all. Running our applications in the cloud just never provided the promised productivity gains to do with any smaller of a team anyway.

I’ve never been a big fan of the “Move to the cloud to save money!” story that vendors tell. There are specific advantages, but saving money (as in, my overall IT expenditures are less than what I was spending before moving to the cloud) is more rare than common, in my experience.