Own a server or rent a cloud - Which costs more?

April 4, 2013 at 22:16:08
Specs: Windows 7
None of you who posted here are explaining the cost of hosting very well. Small biz aside, I want the top server run by top IT and rack space rented from a reliable ISP.
I want to host up to 8 gig per user and not have a worry about capping off the space needed to get the job done. And finally, I want my platform to host about 1/4 that youtube hosts. Can I get a quote on that cost? The question is blunt. Do I pay through the nose for a cloud host like Amazon which can be 30G/month? Or do I go with buying servers and setting up a new network?

See More: Own a server or rent a cloud - Which costs more?

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#1
April 5, 2013 at 07:23:53
We can't really answer your question for you.

Since you're looking at having someone else provide you with server and network, why don't you research businesses like that? It's simple enough to go to any search engine and begin searching hosting businesses.

You ask about buying your own server and network. Well, you know what you need (I should hope) so why don't you call computer businesses that deal with servers and get some quotes from them so you can compare costs. You'll also want to do some research on network appliances (router, switch(es), etc) and do some pricing on all the above.

As a 3'd alternative, you could buy your own hardware and look into having it hosted by a "colocation" business.

google is your friend

It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate;
I am the captain of my soul.

***William Henley***


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#2
April 5, 2013 at 07:26:47
This is a complex question with no one correct answer. If you are unqualified to make this decision you need to engage the services of a professional consultant. This is too important to trust to advice you receive on a forum.

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#3
April 5, 2013 at 08:48:10
The view presented is also myopic.

You aren't including security, what bandwidth requirements may be, and a lot of other very important variables. Do you have a realistic view of what YouTube hosts?

Youtube is hosted by google. Take a look at their world map. There is no way you can even get close to that scale at this point

http://royal.pingdom.com/2008/04/11...

I would suggest you need to educate yourself so you can realistically decide on what is the best course of action for you to take.

Answers are only as good as the information you provide.
How to properly post a question:
Sorry no tech support via PM's


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Related Solutions

#4
April 5, 2013 at 12:22:46
Your first line:

"None of you who posted here are explaining the cost of hosting very well".

This appears to be the first question you have asked on Computing.Net.
Maybe what you have seen (somewhere) was not in answer to that particular question.

Always pop back and let us know the outcome - thanks


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#5
April 5, 2013 at 12:46:13
Looks like subtle Spam to me. I can't believe that any serious business would be asking for this sort of advice on an Internet forum. If the question is genuine I can't see this company lasting long.

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#6
April 5, 2013 at 22:22:02
You are not in my shoes. A rag tag group of misfits managed to get a platform built costing 100 G. The design team may win an award for it. I have a marketing team that are considered corporate rock stars. The hosting issue was thought to be solved until a recent meeting with the design engineers. The serious business aspect has a launch date and I am suddenly scrambling for data, to see if having a huge monthly bill for hosting is better than growing the team to run a server. I am an adviser. It will take me a week to research the input I received from this forum and bring it to the table. You are 100% Wrong saying no serious business would be asking for this info on a forum., only because you have NEVER seen anyone in the position I am in.

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#7
April 5, 2013 at 22:24:25
Thank you. This info was very helpful. Now go try finding someone fortunate enough to be in my shoes :) There are not very many.

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#8
April 5, 2013 at 22:26:13
My apologies for not being allowed to give up much info.

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#9
April 6, 2013 at 08:29:27
You can edit your post in these forums :-) so you don't have to mutlipost single sentences fyi.

It is still hard to believe at a $100,000 development you are 1. talking a single server, 2. no one thought about this until now and 3. you would be asking this question in a public forum.

Where is your business plan? Usually you start with that just to get the $100,000

But let pretend this is real.

It does not appear you have inhouse talent in this regard. Your only choice given this critria and the timeline you infer is to engage a hosting solution.

You need to come up with the basics like how many users will be accessing, what they will be accessing and how much of this they will be accessing. Then you would write a RFP [request for proposal] and send it to a number of hosting companies requesting they consult with you on this and propose what bandwidth you need and server processing/space requirements plus what other special programming like connecting credit card system/online ordering.

This should get you started. Might want to pop back some time and let us know how it worked out for you.

Answers are only as good as the information you provide.
How to properly post a question:
Sorry no tech support via PM's


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#10
April 6, 2013 at 18:53:54
1) Talking a single server. Well , no I am talking multiple servers and was researching the cost of one. 2) the hosting issue was solved as we have a host. The problem arose when the design engineers gave up the data regarding hosting costs a lot later than we had liked. 3) I asked in this forum because I had the impression I would get some answers. I was honest when I mentioned that nobody has answered the host costing issue very well, and I apologize for being too honest maybe. Thanks for the info. The platform goes live as planned no matter what. A main issue being faced is do we cap the amount of people who can use it. There is currently 2 gig per member for soft launch, but obviously we will be raising that. Now the choice is, do we tell 1 million people in an ad campaign, to get 10,000 to join and cap it there? You can imagine how the entire issue being tossed at you suddenly, and very late in the process of building, is not good. The business plan has been drawn up by a $675.00/hour accountant and an entire book written. Every person added to do a job has decided to stay aboard and help make the project a success. Who knows how many servers we will need. What if our ad campaign drives too many people to sign up? The bill for the first month could wipe us out. The funding for the project will only come after the launch. So that first month comes out of staff pockets, when we are short on funds. Imagine going into a 'dragons den' for funding with no operating prototype. Once I gather enough info on setting up our own servers vs using a high priced host, I will stop back in. the platform goes live no matter what problem I am trying to solve today.

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#11
April 6, 2013 at 21:47:52
1) What one costs can't be used to extrapolate on the cost of multiple servers as the number, as well as when they're deployed can, and will affect cost. To whit, if you want to deply 5 servers at the same time, that should be cheaper on a per server basis than a single. Deploying 5 servers, one at a time, over a period of weeks will get you the single server cost.

2) Why would the design engineer be researching cost? This is a simple task that can be farmed out to most anybody in the IT team. The engineer should be engineering. That's what you pay them the big bucks for. All the information one needs for writing an RFP can easily be researched via google.

3) As I said in my first response. Nobody here can answer that for your without full knowledge of the amount of equipment and bandwidth you need. Little details like are you running VM's? If so, are you planning on connecting the servers to the network utilizing LAG's? What kind of business is this that you have a 2 GB per member limit on bandwidth?

The business plan has been drawn up by a $675.00/hour accountant

There's problem number one. Never let an accountant draw up anything. Figure out what you need and then tell the bean counter to write checks. Accountants don't know squat about IT and most barely know how to start a computer up.

Once I gather enough info on setting up our own servers vs using a high priced host, I will stop back in.

Here's some info for you to consider. A proper datacenter will have the following:
- it's own AC system that's independant of the rest of the building
- UPS's (really big expensive ones)
- A generator capable of running all equipment in the datacenter including AC
- fire suppression system that relies on something that isn't liquid
- overhead cable runs (grounded)
- proper server racks (grounded)
- Cat 6 (minimum) cabling
- patch panels in each rack
- Layer 2 (minimum) switches - 10 Gb backlplane
- Dual redundant core switches - 10 Gb backplane

If you don't have a proper data center, you're not going to want to host your own servers.

It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate;
I am the captain of my soul.

***William Henley***


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#12
April 8, 2013 at 21:26:29
I am going to say this only. I really appreciate the feedback. I have yet to bounce the idea of owning servers to my team. You all scared the living ba jee bees out of me. Nevertheless. I did manage to get more attention on my ideas of hiring programmers to eventually take away all work from the current engineers. I may look here for that staff. Congrats!

I will take a PM if you wish to contact me. VIA site staff only.


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#13
April 9, 2013 at 08:37:39
This isn't the programming forum. It's the networking forum. If you were looking for help to build and furnish your own datacenter then you would definitely want to hire me. However, I doubt you could afford me because it would take minimum, $250,000.00/year salary with a full years pay in advance as well as you covering the moving costs to get me, and my wife, to leave our present positions and move to wherever you are. You'd also have to deal with immigration and pay that cost as well.

Since we both know that's not going to happen...........let me say one last thing on this topic.

Whatever it is you're doing, you don't really sound to me like you have a handle on the entire logistics of it. I think before you go any further and spend any more money, you need to hire a qualified, experienced IT professional to consult on your project with you. Your consultant will be able to help you through all stages of your project. Without meaning to be rude, you obviously do not know enough about IT to run a project of this scope. Your best bet is hiring a good consultant.

It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate;
I am the captain of my soul.

***William Henley***


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#14
April 9, 2013 at 09:46:07
2gig x 10,000 users = 19.53 terabytes
2gig x1,000,000 uses = 19531.2 terabytes
or 2.00773026 petabytes
http://en.wikipedia.org/wiki/Petabyte

Minimal data failover
10k users = 40 terabytes
1000k users = 41,000 terabytes
or 4 pedabytes

Backup storage same as minimal failover. Can you imagin the lawsuits if you lost their data?

You are not going to be doing this in house. You are not even in the realm of reality for startup. Data storage requirements and liability protection are the FIRST subjects in a business plan.

Cut your losses while you are ahead.

Answers are only as good as the information you provide.
How to properly post a question:
Sorry no tech support via PM's


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#15
April 9, 2013 at 15:43:23
As I posted earlier. The site platform goes live as planned. Back up data and cloud hosting has all been established. The question I posed needs more info. The site will be looking to get to 10,000 members as fast as possible. The budget had already been set until the decisions were made to see exactly how much space we will allow each member. We want to increase the amount of gigs per user after the first month. I still need to research the entire cost of starting up a company that will act as the servers. That is a year away. The host has back up data storage that comes with our 'plan' Obviously there are many facets to this entire deal that would scare away someone who has no clue to what they are doing. I cannot go giving up all the info in a public forum. Thanks for your concern.

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#16
April 9, 2013 at 20:52:37
You're mistaken. I'm not concerned. I have nothing at stake in this. You do, and you should be concerned.

Like wanderer I have been working in IT for quite some time now and I could tell from your very first post you personally don't know much about IT. Thus my suggestion to hire a qualified professional IT person to consult and help you figure out what you need to achieve your goal, and how best to go about getting it.

So far you have you, someone who doesn't know much about IT, and some "engineers". Engineers are great if you want to build something like a bridge, or a building. If they're electrical engineers, why they could help you build circuit boards. That does not qualify them to build a network and a bunch of servers. You also mention accountants. Bean counters barely know how to turn a PC on so they're not going to have a clue either.

Would you hire the above group to design a rocketship from the ground up? Hardly. Assuming you have the money and/or backing to startup a project to build a rocket, your very first step toward getting off the ground without blowing up or going bankrupt long before you get to the countdown would be to hire professionals in rocketry. You hire the bean counters and engineers when it's time to start building the rocket.

Anyhow, it's been interesting watching you fight a couple IT professionals and outright ignore solid advice. When whatever it is you're doing fails, think back to us trying to help you and kick yourself once really hard in the ass for not doing so.

It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate;
I am the captain of my soul.

***William Henley***


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#17
April 10, 2013 at 11:26:17
"The budget had already been set until the decisions were made to see exactly how much space we will allow each member"

I gave you the space required given your criteria. 20 terabytes. So if the budget is already set you have to reverse engineer the amount of space per user based on the dollar amount allotted devided by 10k of users.

Your CPA should have already has this figured out. It's simple math.

"I cannot go giving up all the info in a public forum"

Believe me when I say no one here is interested in getting into this boat you are trying to float.

These folks give 10GB free
http://gogrid.net/cloud-hosting/clo...
data transfer rates of 20TB is $1800

Answers are only as good as the information you provide.
How to properly post a question:
Sorry no tech support via PM's


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