It's not a server, but I've seen machines used in physics simulations have something on the order of 256 GB RAM in them. As far as I know they cost maybe $20k-$30k, so not absurdly expensive.
I don't think addressing that memory is a problem on any x64 architecture. Windows Server 2012 has a 4TB upper limit on RAM, apparently [1], and as far as I can tell there's no reason for this other than product differentiation between different "levels" of the operating system.
$4k is all you need to build a whitebox 256GB machine: dual-socket G34 motherboard with 16 DDR3 slots lke the ASUS KGPE-D16 ($500) + two Opteron 6320 (2 * $300) + sixteen 16GB registered ECC DDR3-1600 (16 * $160) + chassis/PSU ($500) = $4160.
Doing this on Amazon r3.8xlarge ($2.8/hr) would cost you $8100+ over 4 months.
A DIY server can make sense in some cases. Eg. you are a very early-stage startup with almost no funding, and you are good at assembling and troubleshooting computers, and are ok with mere warranty on parts as opposed to full vendor support from HP/Oracle/Dell, go for it. That's how many startups started (see Google and their makeshift half-donated half-loaned boxes in 1998).
Don't forget to factor in the costs of running, cooling, and maintaining that much hardware (also bandwidth costs). I'm not saying it's $2k/month, I'm just saying don't compare the physical box and AWS without factoring everything in. At the end of the day, if you don't need the support, you're probably right that a dedicated box makes sense there.
AWS has among the highest bandwidth costs you're going to run into, if we're talking co-location, dedicated, or self-hosting. Their bandwidth costs are the sole reason I won't go anywhere near AWS yet, I consider their prices outrageously high.
10tb = roughly $1,000 per month
They're between 5 and 50 times more expensive on bandwidth than the options in dedicated / colo / self hosting.
they negotiate, still. I know several startups which went to amazon, said, "hey, your competitor is cheaper, what is your value prop" and suddenly had 50% discounts, etc. It's amazing how much you get simply asking!
I don't think addressing that memory is a problem on any x64 architecture. Windows Server 2012 has a 4TB upper limit on RAM, apparently [1], and as far as I can tell there's no reason for this other than product differentiation between different "levels" of the operating system.
1. http://msdn.microsoft.com/en-us/library/windows/desktop/aa36...