> It obviously has to be more expensive than buying the stuff yourself, otherwise they wouldn't make money. What you are buying is essentially flexibility. > -

> It obviously has to be more expensive than buying the stuff yourself, otherwise they wouldn't make money. What you are buying is essentially flexibility. > - are a cash-strapped startup and are fine with paying extra as long as you don't have to provide money upfront This is where the legitimate value of VPS and cloud computing for early startups. The price premium (i.e. a multiple, rather than merely a percentage) is comparable. That implies a high degree of waste/risk with unused/unreturned inventory is baked into the price. What I have yet to read, when reading about this benefit, is what happen when the startup is no longer cash-strapped. In practice, I've seen many remain "fine with paying extra", with the benefit being not having to transition to the cheaper option. It's a subtle form of lock-in. This service, however, appears to be aimed at consumers and only considering B2B in the future, so perhaps it's all academic.