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Renting can be cheaper than owning if the person you rent from can leverage economies of scale that you can't dream to achieve.
by adrianN 4y ago
Renting can be cheaper than owning if the person you rent from can leverage economies of scale that you can't dream to achieve.
- flakeoil 4y agoRenting is typically cheaper if you use the thing rarely. If you use it regularly it is typically cheaper to buy.
- pclmulqdq 4y agoNo. Forget the economies of scale, because they don't help you, as a buyer. What helps you is leverage. The economies of scale only get passed to the consumer if another provider is willing to pass the savings on, which only happens in commodity markets (like oil, wheat, etc.). Low-end server rentals are a competitive market. "Big 3" cloud is not: they use differentiated products and egress fees to lock you in to their oligopoly. They don't have to pass on their economies of scale to you. They don't pass on their economies of scale to you. They charge you slightly less than your cost to leave them, and that's it.