1. Year 1 - Q1 Year 1 - Q2 Year 1 - Q3 Year 1 - Q4 Total Y1 Year 2 - Q1
Own servers and colo
Servers # 250 250 250 250 1000 0
cost/server $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Server cost $ 625,000 $ 625,000 $ 625,000 $ 625,000 $ 2,500,000 $ -
Network Gear $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 500,000
Colo costs $ 21,000 $ 39,000 $ 57,000 $ 75,000 $ 192,000 $ 75,000
Admin $ 25,000 $ 25,000 $ 50,000 $ 50,000 $ 150,000 $ 50,000
Total Cost $ 796,000 $ 814,000 $ 857,000 $ 875,000 $ 3,342,000 $ 125,000
Use AWS
Instances 125 250 375 500 500
Server Hours 2190 2190 2190 2190 2190
Admin $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 100,000 $ 25,000
Price 0.45 0.45 0.45 0.45 0.4
Total AWS Cost $ 148,188 $ 271,375 $ 394,563 $ 517,750 $ 1,331,875 $ 463,000
AWS vs Colo $ $ (2,010,125)
AWS vs Colo % -60.1
Notes: This example does not include storage, data transfer or network gear costs.
1) Assumes use of reserverd AWS images
2) Assumes AWS elastic load balancing to lower required # of servers
3) Assumes Admin costs for colo are 2X due to AWS automation
4) Assumes avg colo server utilization of 25%
5) Assumes cost of AWS instances drop 10% Y over Y

2. Year 2 - Q2 Year 2 - Q3 Year 2 - Q4 Total Y2 Year 3 - Q1 Year 3 - Q2 year 3 - Q3 Year 3 - Q4
0 0 0 0 0 0 0
$ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
$ - $ - $ - $ - $ - $ - $ - $ -
$ 75,000 $ 75,000 $ 75,000 $ 300,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000
$ 50,000 $ 50,000 $ 50,000 $ 200,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 125,000 $ 125,000 $ 125,000 $ 500,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000
500 500 500 500 500 500 500
2190 2190 2190 2190 2190 2190 2190
$ 25,000 $ 25,000 $ 25,000 $ 100,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
0.4 0.4 0.4 0.35 0.35 0.35 0.35
$ 463,000 $ 463,000 $ 463,000 $ 1,852,000 $ 408,250 $ 408,250 $ 408,250 $ 408,250
AWS vs Colo $ $ 1,352,000 AWS vs Colo $
AWS vs Colo % 270.4 AWS vs Colo %

3. Total Y3 Year 4 - Q1 Year 4 - Q2 Year 4 - Q3 Year 4 - Q4 Total Y4
250 250 250 250 1000
$ 2,500 $ 2,500 $ 2,500 $ 2,500
$ - $ 625,000 $ 625,000 $ 625,000 $ 625,000 $ 2,500,000
$ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 500,000
$ 300,000 $ 21,000 $ 39,000 $ 57,000 $ 75,000 $ 192,000
$ 200,000 $ 25,000 $ 25,000 $ 50,000 $ 50,000 $ 150,000
$ 500,000 $ 796,000 $ 814,000 $ 857,000 $ 875,000 $ 3,342,000
500 500 500 500
2190 2190 2190 2190
$ 100,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 100,000
0.3 0.3 0.3 0.3
$ 1,633,000 $ 353,500 $ 353,500 $ 353,500 $ 353,500 $ 1,414,000
AWS vs Colo $ $ 1,133,000 AWS vs Colo $ $ (1,928,000)
AWS vs Colo % 226.6 AWS vs Colo % -57.7

4. Totals after $ years of operation
$ 5,000,000
$ 1,000,000
$ 984,000
$ 700,000
$ 7,684,000
$ -
$ -
$ -
$ -
$ -
$ 400,000
$ -
$ 6,230,875
$ (1,453,125)
-18.9