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I suspect having a few different teams competing (for funding) to provide mirrors would rapidly reduce the hardware cost too.
The density + power dissipation numbers quoted are extremely poor compared to enterprise storage. Hardware costs for the enterprise systems are also well below AWS (even assuming a short 5 year depreciation cycle on the enterprise boxes). Neither this article nor the vendors publish enough pricing information to do a thorough total cost of ownership analysis, but I can imagine someone the size of IA would not be paying normal margins to their vendors.
$25 million a year is not remotely a lot for a non-profit doing any kind of work at scale. Wikimedia's budget is about seven times that. My local Goodwill chapter has an annual budget greater than that.
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