7 ms·

Surely if users are flocking to the 'latest and greatest' you deal with that by gradually reducing the prices of the old servers such that you get natural price

• vidarh 13y ago
  That's one possible solution, but then that needs to be accounted for in their price model to ensure they can pay off the cost of each server over its life, and that seems to be a substantial part of the problem they've run into: The turnover on each new generation is higher than their models accounted for, and so reduces their lifetime expected revenue per server too much. Doing what you suggest is certainly possible, but would likely mean they'd need to charge more early on.