2 ms·
It is not just about conservation and high consumption. For example, it is lot easier to build infra when you charge people 4x their consumption cost as single
by manquer 5y ago
It is not just about conservation and high consumption.
For example, it is lot easier to build infra when you charge people 4x their consumption cost as single item, than split into line items. When you need to build a new power plant the infra costs are going to shoot a lot and nobody would want to pay for that when they see an line item for infra.
Every SaaS company and all of Cloud is built on this human behavior . I would even go so far to say that even mortgage, insurance, any credit business depends on this behavior. Most people would pay extra for their server by hour or second rather than pay for consumption + infra.
Also infra costs split equally is unfair ? if you consume more, more of the infra costs have to be apportioned to that person right ? Basically if power plant producer 1000MW the person consuming 900MW has to pay 90% cost of building the plant in addition to paying 90% for consumables for generating that 1000MW .
The solution here is to have spread between buy / sell rates which account for distribution losses, maintenance, infra and storage and peak capacity planning etc