If you're selling hosting, you can either sell CPU at close to cost and make money on bandwidth, or make your margins on CPU. If people are building things that

If you're selling hosting, you can either sell CPU at close to cost and make money on bandwidth, or make your margins on CPU. If people are building things that don't stress the CPUs at all, you can load up servers and make ~$60-70/mo margins on CPUs. When they expect dedicated CPUs and memory, they're suddenly going to price shop across cloud providers and won't pay enough to make those same margins.