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If the upkeep is smaller than the cost of capital to the company, such an arrangement probably remains mutually beneficial. Given that the cost of computing res
by JoachimSchipper 14y ago
If the upkeep is smaller than the cost of capital to the company, such an arrangement probably remains mutually beneficial. Given that the cost of computing resources was falling enormously and continues doing so, I can see why TextDrive expected this arrangement to be profitable for them. Note that pensions and annuities, arrangements with terms best described as "pay $X/month for as long as I live", exist.
(Of course, they pivoted out of the hosting business and found that supporting a one-off machine is an expensive headache. But it's not impossible for such an arrangement to work.)