It's interesting that Netflix mentions the cost of infrustructure.<p>At the moment, owning dedicated servers and coloing them yourself is orders of magnitude cheaper then a cloud provider. It's only "cheaper" if your cost of money is stupidly high, ie. you're a startup, or other factors dominate your TCO, ie. you're a startup.<p>What is interesting is that supply side there is no reason for this to be so. Furthermore there are reasons to expect that the equilibrium price for cloud to be below the cost of dedicated hardware/colocation.
> The combination of low-cost data center infrastructure and rapidly evolving, free or nearly free open-source development tools means that tech startups can get going cheap, and if things don’t work out, move on to other things, Bechtolsheim said today at the GigaOM RoadMap Conference.<p>How is this news? Anyone in the startup space already knows about AWS and open-source.<p>Thanks, Andy Bechtolsheim, for confirming what many of us have already known for a long time.