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With the proliferation of cloud services, cloud-based systems can become a cost-effective means of on-demand content delivery. In order to make best use of the available cloud bandwidth and storage resources, content distributors need to have a good understanding of the tradeoffs between various system design choices. In this work we consider a peer-assisted content delivery system that aims to provide guaranteed average download rate to its customers. We show that bandwidth demand peaks for contents with moderate popularity, and identify these contents as candidates for cloud-based service. We then consider dynamic content bundling (inflation) and cross-swarm seeding, which were recently proposed to improve download performance, and evaluate their impact on the optimal choice of cloud service use. We find that much of the benefits from peer seeding can be achieved with careful torrent inflation, and that hybrid policies that combine bundling and peer seeding often reduce the delivery costs by 20% relative to only using seeding. Furthermore, all these peer-assisted policies reduce the number of files that would need to be pushed to the cloud. Finally, we show that careful system design is needed if locality is an important criterion when choosing cloud-based service provisioning.