It is true that AWS and other elastic compute providers are constantly lowering their pricing for compute resources on-demand. It is also true that AWS clients have the ability to reduce their rates even more by committing to minimum compute utilization thresholds. I’ve run the numbers with CFO’s and CXO’s a few dozen times now however over the past 2 years and there is still no doubt about it, elastic computing is far better suited for dynamic work loads and standard in-house or hosting solutions are far better suited for static and predictable work loads.
Maybe more people will start believing this now that NetworkWorld is saying the same thing in the article they pushed out recently linked below? I recommend checking it out as it links to a bunch of relevant and tangible case studies and statistics singing the same song.