What do you think about Amazon ElasticCache? (http://aws.amazon.com/elasticache)
High-Memory Quadruple Extra Large Cache Node (cache.m2.4xlarge): 68 GB memory, 26 ECUs (8 virtual cores with 3.25 ECUs each), 64-bit platform, High I/O Capacity cost 2.24$ per hour or about 1600$ per month!
For about 5000-6000$ you can purchase server with following hardware:
4x AMD Opteron 6128 / 2,00GHz Eight-Core (i.e. 32 CORES)
64GB ECC registered DDR3
2 * 80GB 2,5 Intel SSD with Adaptec RAID
1+1 1400W redundant (Hot-Swap) PSU
etc.
Now install here your favorite free Linux and Memcached and you are ready to go
Totally:
Server with better hardware (32 real 2GHz cores instead of 26 ECUs i.e. 8 virtual cores in AMZ, very fast DDR3 memory, redundant power supply and brand MB (Supermicro) instead of “well know instance lifetime issues in AMZ” etc) will cost you something like 3-4 month of AMZ instance rent! Sure, you can say like: what about Collocation cost? Hm… 1U server probably MAX 100$ per month (including some big traffic) etc.
Instead of Conclusion:
So you still think same about Amazon ElasticCache ???