Economy of scale is different when you’re providing a cloud business because your costs (and hopefully revenue) are dominated by the head customers. Imagine a c

Economy of scale is different when you’re providing a cloud business because your costs (and hopefully revenue) are dominated by the head customers. Imagine a company whose business model isn’t profitable for AWS becomes the next Dropbox. Suddenly the tail can’t subsidize the head. And even if it could, the business is shot. You always need the head to subsidize the tail (e.g. free trials). You can’t let the head become unprofitable.