Title: Lab 14 — Cloud vs. Homelab TCO Showdown
Course: AIINFRA 100: AI Systems & Development Environments > Section: Week 14 — Cloud, On-Prem & Hybrid: Deployment Models and Cost Awareness

🛠️ Lab 14 — Cloud vs. Homelab TCO Showdown (50 pts)

Goal: Without buying or installing anything, build a 3-year total cost of ownership (TCO) comparison between (a) renting a cloud GPU instance and (b) buying a used RTX 3090-based homelab workstation — then figure out under what usage assumptions each option "wins." This is the deployment decision from lecture, made concrete with numbers. Steps:

1. Get the TCO worksheet template from your instructor (a spreadsheet with two tabs: "Cloud Rental" and "Homelab Purchase"). Make your own copy before editing.
2. Research cloud GPU pricing. Pick one provider (AWS, Google Cloud, or Azure) and find the published on-demand hourly price for a single GPU instance comparable to an RTX 3090 (~24 GB VRAM). Record provider, instance type, and hourly rate with a citation.
3. Model the cloud scenario. Assume a steady 8 hours/day, every day, for 3 years: hourly rate × 8 × 365 × 3. Enter the formula and result in the "Cloud Rental" tab.
4. Research the homelab hardware cost. On an online marketplace (e.g., eBay), find a current asking price for a used RTX 3090 (24 GB) or a workstation built around one. Record the price and a link in the "Homelab Purchase" tab.
5. Estimate homelab electricity. Look up the RTX 3090's typical power draw under load (~350 W), add a modest amount for the rest of the system, and compute 3-year electricity cost at the same 8 hours/day using your local (or a stated average U.S.) kWh rate. Show your formula.
6. Total 3-year homelab TCO = hardware price + 3-year electricity. (You don't need to dollarize driver/firmware maintenance time, but name it as a qualitative factor.)
7. Compare and flip the assumption. Compare the two 3-year totals, then re-run the cloud calc at low utilization (e.g., 2 hours/day) to see whether the winner changes. Identify the rough utilization (hours/day) where the two options break even.
8. Write a recommendation (200–300 words) stating which option wins at 8 hours/day, which wins at low utilization, where the breakeven falls, and what non-cost factors (data privacy/sovereignty, flexibility, maintenance burden, egress) might change your call even if the math points the other way.

Deliverables: Submit your completed TCO worksheet (spreadsheet file) and your 200–300 word recommendation, either as an upload or pasted online text entry.