1) The operational overhead is the same as Amazon. Actually I think it's less because everything is so predictable. Every machine we get has identical performance to any other. We still don't have to care about the exact same list of things that EC2 provided but we also don't have to care about weird cloud issues.
2) See above answer but also Softlayer are happy to provide actual support for any issues in a timely manner. In general everything has been much more reliable that you actually have to think less about High Availabilty technologies that make your stack more complex. In the years I've been using them we have only had a few hard disk failures that were replaced in around an hour and we just failed over to a replicated slave manually for around 2-3 minutes of downtime.
3) Resources are no more finite than EC2. The only difference is that the provisioning time is 1 hour rather than 1 minute. That has still been perfectly fine to respond to unexpected load events.
4) Absolutely
5) Also great.
People often compare Cloud Hosting with Colo. What they should compare cloud hosting with is renting servers. You get 95% of the benefits of cloud with none of the drawbacks.
Why? What are you talking about? You are hiring servers you are no colo'ing them. Networking them is not your problem. Your responsibility still starts from a root prompt just there's no VM layer between that and the physical server.
And for cloud: we purchased video conversion as a service, that one ran in the cloud. I can see how that makes sense.
This is the worst part about moving out of the cloud, especially since cloud computing has moved a lot of ops and deployment responsibility to developers.
1. Your operational overhead will increase _a lot_. Be ready to hire on a lot of ops staff if you expect them to do anything but put out fires. And as you grow you'll need experts, people like network engineers.
2. Any weirdness you experienced with AWS infrastructure will be replaced with weirdness in your own environment, except now you're on the line to troubleshoot and fix it yourself.
3. Operation staff will immediately start guarding the food bowl as resources become finite. Server provision waits start to seem like breadlines. Power is consolidated with Those Whom You Must Ask.
4. Your cost will decrease, sometimes significantly so.
5. You'll have more hardware flexibility to run your app just the way you want to (Stack Overflow's mega databases come to mind[0]).
In the end I think this type of transition is for stable companies that don't mind or even prefer strong divisions of labor (coders who code, sysadmins who sysadmin, testers who test), but it's not for startups or companies that hope to move with any kind of strong velocity.
[0] http://highscalability.com/blog/2014/7/21/stackoverflow-upda...