We went down this path over the last year, lots of our devs need local and dev/test environments and AWS was costing us a bomb, With about 7 Bare metals(Colocation) we are running about 200+ VMs and could double that number with some capacity to spare. For management, we built a simple wrapper over libvirt.
I am setting up another rack in the US and will end up costing around $75Kper year for a similar capacity.
Our prod is on AWS but we plan to move everything else and it's expected to save at least a quarter of a million dollars per year
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