Why would you move your product into the cloud if it only increased your marginal costs? You move into the cloud to increase your marginal revenue. You've got

Why would you move your product into the cloud if it only increased your marginal costs? You move into the cloud to increase your marginal revenue. You've got this argument by the wrong end. You don't raise your prices because you had to because, well, cloud. You move to cloud specifically so you can raise your price. You might also argue that you move to cloud to reduce marginal costs of distribution, but that's arguable.