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Own data center rarely makes sense. Colocation can work out well for companies with a lot of demand where one location is sufficient.

Dedicated servers (where you don't own the hardware) can make sense pretty quickly, the cost of managing that can be lower than cloud offerings even for mid-sized companies. PAAS or IAAS didn't really change that. Once you have a certain size, having your own department to manage hardware isn't that expensive in comparison.




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