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Not the best way of operating as really you're banking on the user not needing additional memory, and even if they don't - you don't have to give it to them. Sounds pretty awful huh?
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I disagree. It's widely known that burst memory isn't guaranteed, and you should never rely on it.
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The "sounds pretty awful" should have had a little more information I guess. What I was trying to say was that since a company doesn't have to actually provide the burst (since it's not guaranteed and it's there only if available), if that company decided to load up the server so there was no burst really ever available, that's a pretty awful situation. If a host loaded up the machine and left a TOTAL of only 1GB availble to be then shared among all nodes (since it did say up to 1GB burst), they'd still be technically RIGHT. RAM is usable, when available - but in all honesty, good luck getting a piece of it.
Artashes that Softlayer is notoriously higher than most data centers. But then again, they do ALL the work for you - no server management needed or system admins etc. Just plug in and you're done.
Dual Xeon Quad Core (Gainstown) - that's 8 cores, 12GB memory - starting about $600. Increase that to 24GB memory and it's only $850/month. Again this is with leased hardware from companies.
As stated earlier, you can get bulk discounts, run software that is opensource (reducing overhead fees) and then strip off management and do it yourself, and you can really start to reduce prices when needed. It can be very expensive if you're just starting out and you only have one or two machines and you're trying to compete against companies that have hundreds or even thousands of systems under their belts. Your prices HAVE to be higher just to cover costs.