Why Some Startups Say the Cloud Is a Waste of Money

Eric Frenkiel ditched the stereotype. It was just too expensive. In Silicon Valley, tech startups typically build their businesses with help from cloud computing services -- services that provide instant access to computing power over the internet -- and Frenkiel's startup, a San Francisco outfit called MemSQL, was no exception. It rented computing power from the granddaddy of cloud computing, Amazon.com. But in May, about two years after the company was founded, Frenkiel and MemSQL shifted away from the Amazon cloud, moving most of their operation onto a fleet of good old fashioned computers they could actually put their hands on.

via Wired Top Stories http://www.wired.com