Not sure what current power draw is on my systems, but it's relatively low. The only drawback that I see on these systems is that they don't have dual PSU's. For my needs (lab) that's not a concern, but for production use I'd want dual PSU's.
The 1100's are built for big clusters and not for critical applications like the 1950III is , the hardware itself is very different, starting by the quality of materials and parts.
Besides most 1100's ive seen dont support Raid
The reply I think was meant more to address the power requirements than the price. You're simply not going to find raw resources like that for that price, but one of the biggest costs and issues you're going to run into with colocation is power.
The standard 42U rack normally comes with a 20A drop for power, and you can eat this up pretty quick with those C1100s. This is highly dependent on your use scenario, but you could quickly end up paying more in the long run for power, than if you spent the money up front for some E5s. That's something that you have to decide, though. A lot of startups use these simply because of the low buy-in cost.
The E5s you're going to get better power consumption and more raw CPU power (considerably more in many cases), but you're going to pay a heftier price tag.
The C1100s definitely have their place; we use them as budget dedicated and also for internal clouds where RAM is more important than raw CPU power, but we make sure and spread them out among the racks simply because they are power hungry. A full 42U rack of these would be pretty nasty when it came to your power drops.
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