Economic Viability of Outsourcing Cluster Computing to the Cloud: Insights for Technological Entrepreneurship and Regional Innovation in Honduras (#889)

Authors

Zablah, Isaac

Diaz, Salvador

Agudelo-Santos, Carlos

Molina, Yolly

Madrid, Melania

Diaz, Alicia

Madrid, Marcio

Abstract

This study evaluates, from a cost and entrepreneurial opportunity perspective, the viability of maintaining a university cluster composed of ten HP ProDesk 600 G1 nodes (40 cores, 60 GB RAM) versus contracting equivalent capacity on Amazon EC2 (C6i.2xlarge instances). A detailed total cost of ownership (TCO) model was developed, incorporating capital investment, maintenance, electricity (USD 0.22/kWh), internet connectivity (200 Mbps), and cloud tariffs under both On-Demand and three-year Savings Plan modalities. At 30% utilization, the local cluster achieves a unit cost of USD 0.025/core-hour, while EC2 ranges from USD 0.048 to 0.105/core-hour. Sensitivity curves indicate that the cloud only becomes cost-effective when utilization exceeds 65% or electricity surpasses USD 0.45/kWh. The analysis further explores implications for deep-tech startups, university spin-offs, and incubator programs: while the cloud provides elasticity and access to advanced hardware, it may erode early-stage margins. The study proposes a reproducible decision-making framework tailored to emerging innovation ecosystems in Latin America, highlighting the strategic value of hybrid infrastructures for balancing cost, flexibility, and regional value retention.