this post was submitted on 05 Jul 2023
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Sure, if they are only ever going to do text over XMPP, that's plenty. If they ever want to do more than that, VPS will mean more money, whereas a self-hosted server won't. Shared docs, video or music streaming, e-book library, etc will murder a small or medium instance on AWS if you've got 30 people using it at once. Music and video especially, obviously.
Co-ops generally want to minimize costs and outside reliance, and "scale up on hosted cloud stacks as-needed" is sort of the opposite of that philosophy.