Seems reasonably fair. But to compare:
On this (hypothetical - but close enough to the truth) project we've got about $100,000 in hardware and about $20,000 a year in hosting. This is one fairly large rack of machines. Assuming we'd have to double the amount of raw CPU power, that would probably go add at least another $40,000 hardware and something like $10,000 - $20,000 / year in hosting costs depending on how large the racks are. One man/month
would cost roughly $15,000, probably a bit less. You can see there's some room here. :-)
