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but for day-to-day operations you would be an IDIOT to go that route, IMHO.
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If you want to spend hundreds of thousands (or millions) per year building and operating your own datacenter, be my guest. I'm sure the likes of HP, Cisco, Microsoft, NetApp, and VMWare will appreciate all the business you give them. Meanwhile your competitors who embraced cloud computing will enjoy the cost savings, agility, and competitive advantages it gives them.