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Too big to use utility computing ?

Dear users of S3, EC2, and other ‘utility’ computing stuffs:

Here’s a crude and completely oversimplified evolution of infrastructure needs of a growing website, with an assumption:

Have you ‘outgrown’ your original use of utility computing, for whatever reason ? If so, what was the reason? Financial? Technical?

Why I’m asking:

I’m in the process of writing a book on the topic of capacity planning for web architectures, so I’m interested in what you’ve got to say.

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