Friday, October 09, 2009

Is Encoding in the Cloud Cost Effective?

At this point I do not think the cloud transcoding is not really cost effective. Here is why:
Say I have to maintain a 24x7 channel. An hour of high quality content is roughly around about 3GB (~ 2TB per mo). I did pricing of encoding companies like Hey!Watch, FlixCloud, Encoding.com, Multicast Media Transcoding As A Service. It would cost any where between 2000$ - 8000$ per mo.

It is better to buy a cluster of Rhozet Carbon coders running on a multi-core servers. Even if I include colo + bandwidth it is still cheaper. However my calculations exclude the cost of having an engineer to manage the Colo. For startups cloud encoding still does not make sense. It is more useful for medium and large media companies who do not want worry about technology.

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