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Cloud hosting can be an amazing cost reduction, but it really depends upon a lot of factors.

When you're first starting out I believe most businesses would be much better off hosting on a small VPS at a place like 6sync or Linode. Once you reach a certain scale, the low-cost VPS model starts to fall apart and cloud hosting on places like Amazon tends to be a lot cheaper than doing the old school dedicated server/data center model.

In any case, though the point of this article is how cheap it can be to start a business these days, I think they may have preoptimized and spent too much on some things --

I would have gone with a cheap VPS solution to start while keeping a move to AWS in mind for software selection. I also probably would have gone with something like bugzilla or another totally free self-hosted issue tracker.

This is not to say AWS isn't a great value at a certain level or that hosted issue tracking systems aren't worth it, but rather that those things are probably best worried about later on once the business has proved to be at least somewhat viable.



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