4 ms·
It's my hardcore held belief that the cloud industry could wildly be disrupted if it was easy enough to order 5 year capacity contracts. Then AWS / GCP etc woul
by codemac 3y ago
It's my hardcore held belief that the cloud industry could wildly be disrupted if it was easy enough to order 5 year capacity contracts. Then AWS / GCP etc would be left with just the elastic demand, rather than the inelastic profit center.
However - this would take a huge amount of upfront investment, have high risks for black swan events against 5y contracts without crypto-style escrow, and I have been unsuccessful pitching this direction in elevators to folks, which makes me think I don't have a visceral enough idea.
- bob1029 3y ago5 years is a really long time on most types of B2B contracts. Especially ones with very thorough operational considerations bound to technology changing over time. Consider how much premiums would be on $TSLA put options that expire in 2028.
- codemac 3y agoSomehow real estate gets away with it, and they have even more fungible contents!
- latchkey 3y agoLambda went from bragging about short contracts [0] to 3+ years and if you look closely, the only thing with actual pricing is 3 years, otherwise it is contact sales and waitlist. [0] https://lambdalabs.com/blog/cutting-the-cost-of-high-performance-deep-learning https://lambdalabs.com/blog/cutting-the-cost-of-high-perform... [1] https://lambdalabs.com/service/gpu-cloud/reserved https://lambdalabs.com/service/gpu-cloud/reserved