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by awaythrow98765
1144 days ago
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> If your business invests in physical servers anticipating strong growth next year then later finds out actually we're going into a recession and those servers are no longer needed, then that's a sunk cost. Cloud vendors also mostly sell minimum use packages for discounts in the range of 20 to 80% (called e.g. "committed use discount" or "compute savings plan"). Lots of businesses use those, because two-digit discounts are real money, but they might find themselves in the same spot as with physical hardware they don't need... |
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And cloud proponents pretend data center / rack space / server leasing doesn't exist either, for those trying to avoid large up front costs.