can you explain the math? I honestly don't have a working knoweldge of the inputs, but let's say i wanted the equivalent of ec2? How would I go about setting it up and the costs? If I wanted to serve a few million english speaking people my web application, how coud I calculate the price? Do I literally buy my own hardware, or I rent hardware at a dedicated rate? These are real questions btw, not rhetoric, it's hard to find a solid blog post or comparison of setting this up and the long term cost v convenience benefits of scaling this because almost everyone uses cloud providers, and by cloud providers I mean digital ocean, AWS, azure, rackspace or now google. Heroku (last I checked) sits on AWS as well and maybe even ngineyard does. actually pretty curious now if a few million people would be worth running your own gear, and if running that gear was lease v buy

The cost difference depends on how much your administration costs go up because you need to do things yourself, rather than through the AWS API. That's why it's hard to calculate.