It is a must to use the Cloud.
Because if your project is a success, you’ll need to scale very fast from a single server to many, just to attend the increasing number of users.
And if you have a lot of users, you’ll need a lot of bandwidth.
Even if you have a single server, but want to serve video, will need a lot of bandwidth to serve data fast.
Here is where Cloud is not an option. It’s a must.
If you use a big server with a lot of RAM or CPUs, or several servers, Amazon EC2 is very expensive.
But to start with the needed power, and to be able to grow really fast, and to pay as you go there is no other option.
The smaller instance from Amazon, is able to serve 150 Mbit per second.
If you need to serve video, where would you be able to deliver it at 150 Mbit/sec rates at 17 € / 14.67 £ / US $23 per month?.
It’s not a matter of something fashion, there’s not alternative.
With the privative price of dedicated bandwidth in the data centres, no one else can offer something similar even for then times this price.
So if you need to be able to pass from a server to 20 or 100 with a click and within a minute, and you need to deliver contents very fast there is no other option.
With Amazon Cloud since you pay per hour, you can create 20 instances to face a rise of visitors, due to a campaign or because you have top visitors window of time, you can create instances as you need and destroy them when you don’t need them and pay only for the hours used.
So when your Start up is growing and low on money/resources, you save the costs of buying several physical server ($2,000 each), the time of installing, of replacing if a motherboard or disk crashes, and simply creating new instances in the Amazon Cloud as you need, and paying only for the time you use them.
So you can save the costs and grow as you need.
There are other benefits like you can use Amazon data centres in all-over the world, where the infrastructure is closer to your customers (reducing the latency and increasing the speed of servicing pages), the CDN service, load balancers…
The cost of the transferred Gigabyte is another reason.
One month I transferred 287 GB and paid only $50.
An small ISP can’t beat this nor even compete with this price and speed.