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by vl 3218 days ago
The problem with bundling is that it stops reflecting underlying costs and creates incentives for customers that skew customer population.

Contrived example of this: since most HDDs workloads are IOPS bound, you decide to sell IOPS bundles and give space for free. Not before long all your customers are backup companies that have low IOPS and high space usage. Your service runs at loss, customers are doing nice price arbitrage on top of it.

Same goes for all aspects of computing platforms for sale: CPUs, RAM, Networking, HDDs, SSDs, GPUs.

Two additional problems are bin packing and provisioning: you need to sell things in such quantities and ratios that you can actually effectively utilize your hardware configurations. You need to order and design your hardware in a flexible manner to be able to adapt for changing ratios of component needs due to changing customer demand.

So it's easier to run "pay for what you use plus profit" pricing, but some customers don't like it due to perceived complexity and potential unpredictability.