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Snap needs to have consistent booked revenue in order justify this sort of outlay. This is akin to dot-com era companies signing long leases on buildings or sm
by burntrelish1273 10y ago
Snap needs to have consistent booked revenue in order justify this sort of outlay.
This is akin to dot-com era companies signing long leases on buildings or small business owners buying lots of inventory. Plus, 2 gigadollars could easily buy 4-10 soup-to-nuts datacenters that have tangible (although less) resale value.
Overexpansion is easy to do and super risky... these sort of moves increase expectations and scare off wise investors.
- late2part 10y agoMaybe. I agree with your sentiment, but a lot of investors say "cloud" - ooh good, I like Google, so Google Cloud must be good, buy Snap Stock!!!
- burntrelish1273 10y agoIdeally, a company should use a hybrid of cloud and on-prem as a p&l dial to adjust risk and agility. EDIT: for super scrappy startups playing with on-prem with lab-like reliability, https://unixsurplus.com/ https://unixsurplus.com/ is awesome.