Definition · The two plansTo reach a target capacity T, measured in multiples of one small node:
horizontal — buy the smallest N with N/(1 + α(N − 1)) ≥ T, at N · u where u is the price of a node;
vertical — buy the smallest rung of the size ladder that is at least T, at the ladder’s price for that rung.
Both are exact given α, u and the ladder. Neither is an approximation of the other.
The horizontal side is a straight line in the number of nodes and a curve in the capacity delivered, because of the coordination term. The vertical side is a staircase in both. Comparing a line to a staircase is what produces more than one crossing.
α = 1/200, node $100.00, ladder: ×2 size costs ×2.2 price
target nodes (ideal) horizontal rung vertical cheaper
1× 1 (1) $100.00 2⁰ = 1× $100.00 vertical
2× 3 (2) $300.00 2¹ = 2× $220.00 vertical
3× 4 (3) $400.00 2² = 4× $484.00 horizontal
4× 5 (4) $500.00 2² = 4× $484.00 vertical
5× 6 (5) $600.00 2³ = 8× $1 064.80 horizontal
16× 18 (16) $1 800.00 2⁴ = 16× $2 342.56 horizontal
64× 94 (64) $9 400.00 2⁶ = 64× $11 337.99 horizontal
Why six nodes for five nodes’ worth
Solve the delivered-capacity condition rather than dividing. With α = 1/200, N nodes deliver 200N/(199 + N) nodes’ worth, so reaching 5× needs 200N ≥ 995 + 5N, that is N ≥ 995/195 = 5.10…, so N = 6. Five nodes deliver 4.90…, which is short. The sixth node is bought entirely to pay for the coordination of the first five.
Example · The penalty at scaleThe same inequality at T = 64 gives N ≥ 12 736/136 = 93.6…, so ninety-four nodes. Thirty of them exist only to carry the overhead the other sixty-four create. And the ceiling is absolute: 200N/(199 + N) rises to 200 and no further, so a target of 250× cannot be met horizontally at this α by any number of nodes at all.
Two crossings, because a staircase is not a line
Horizontal first becomes cheaper at 3×, where four nodes at $400 beat the four-times rung at $484. At 4× it loses again: the same rung now serves the larger target at the same $484, while horizontal has had to buy a fifth node. From 5× on it never loses again.
The reason is the rung. A size you have just bought is cheap per unit of capacity until it is full, and it gets cheaper per unit as the target rises toward the top of it. Every rung repeats that pattern, so the vertical curve is a sawtooth against the horizontal line and the comparison can flip back. Reporting a single break-even hides this; the honest report is two numbers — where horizontal first wins, and where it stops losing.
Example · Buying at the wrong end of a rungAt a target of 5× the vertical plan buys the eight-times rung for $1 064.80 and leaves three nodes’ worth idle: $600 of horizontal capacity would have done. At a target of 8× the same rung costs the same $1 064.80 and is full, while horizontal now needs nine nodes at $900. The rung is at its worst the moment after you are forced onto it and at its best the moment before you outgrow it.
What the prices do not say
One machine is one failure domain. The horizontal plan has a parallel path through it and the vertical plan does not, and that difference is a probability rather than a price — it is computed in “Parallel: Redundancy” on “Availability and Failure”, where two independent components at 99.9% compose to 99.9999% and one component at 99.9% composes to 99.9%. This page does not repeat that arithmetic; it names the gap, because a cost comparison that omits it will pick the single box every time it is close.
There is a second omission worth stating. The vertical plan has no coordination term because there is nothing to coordinate, which is genuinely an advantage: the single box delivers its nameplate. The comparison above already credits it with that — the rung is compared against delivered capacity, not against node count — and it is still the more expensive side from 5× on.