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You're in a seismically active part of the world. Will the venture last in a total loss scenario?

We're currently 1/1 for the recent 4.3 magnitude earthquake (though if SF crumbles we might lose data)

4.3 is a baby quake. I'd hope that you'd be 1/1!

They spent $300,000 on drives, with AWS they would have spent 4x that PER MONTH. They're already ahead of the cloud.

AWS/cloud doesn't factor into my question what so ever. Loss of equipment is one thing. Loss of all data is quite a different story.