My question isn't why do it yourself. A quick back of the envelope math shows AWS being much more expensive. My question is why San Francisco? It's one of the most expensive real estate markets in the US (#2 residential, #1 commercial), and electricity is expensive. $0.71/KwH peak residential rate! A jaunt down 280 to San Jose's gonna be cheaper, at the expense of. having to take that drive to get hands on. But I'm sure you can find someone who's capable of running a DC that lives in San Jose and needs a job so the SF team doesn't have to commute down to South Bay. Now obviously there's something to be said for having the rack in the office, I know of at least two (three, now) in San Francisco, it just seems like a weird decision if you're already worrying about money to the point of not using AWS.
Article says their recurring cost is $17.5k, they'll spend at least that amount in terms of human time tending to their cluster if they have to drive to it. It's also a question of magnitudes, going from $0.5m/mo to $0.05m/mo (hard costs plus the extra headaches of dealing with cluster) is an order of magnitude, even if you could cut another order of magnitude it wouldn't be as impactful.
Problem when you self-roll this is that you inevitably make mistakes and the cycle time of going down and up ruins everything. Access trumps everything.
You can get a DC guy but then he doesn't have much to do post setup and if you contract that you're paying mondo dollars anyway to get it right and it's a market for lemons (lots of bullshitters out there who don't know anything).
Learned this lesson painfully.
it's not just in sf it's across the street from our office
this has been incredibly nice for our first hardware project, if we ever expand substantially then we'd def care more about the colo costs.