When to Move from Cloud to Colocation

Companies spending $15,000 or more per month on AWS, Azure, or Google Cloud are often overpaying by 40–65% compared to equivalent infrastructure in colocation. This guide covers the TCO comparison methodology, hidden cloud costs (egress fees, memory premium, reserved instance traps), workload decision matrix, break-even analysis, and how to structure a cloud-to-colo migration.

Key Topics

  • The three hidden cloud costs that drive overspend: egress, memory, reserved instances
  • TCO comparison: $15k/month cloud vs. equivalent colocation
  • Workload decision matrix: what moves to colo, what stays in cloud
  • Break-even analysis and migration cost estimation
  • How to structure a 4-phase cloud-to-colo migration

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