Cloud hosting vs self hosting price

Posted by yes123 on Pro Webmasters See other posts from Pro Webmasters or by yes123
Published on 2012-10-01T22:26:12Z Indexed on 2012/10/02 3:56 UTC
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I was looking at some cloud hosting price. Consider an entry level self hosted server:

PRICE: 40€
----------
CPU: i5 (4x 2.66 GHz)
RAM: 16GB
hard disk: 2TB
Bandwidth: 10TB/month with 100Mbps

Now consider an equivalent on a cloud structure... (for example phpfog)

 PRICE: 29$
 --------------
 RAM: 613MB (LOL WUT?)
 CPU: 2 Burst ECUs
 Storage: 10GB (WUT?)

Basically with cloud, to have the same hardware of your entry level dedicated server you have to pay 300-400€...

Is it normal? I am missing something?

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