This is how you build a dominant company. Good for you ignoring the whiny conventional wisdom that keeps people stuck in the hyperscalers.
You’re an infrastructure company. You gotta own the metal that you sell or you’re just a middleman for the cloud, and always at risk of being undercut by a competitor on bare metal with $0 egress fees.
Colocation and peering for $0 egress is why Cloudflare has a free tier, and why new entrants could never compete with them by reselling cloud services.
In fact, for hyperscalers, bandwidth price gouging isn’t just a profit center; it’s a moat. It ensures you can’t build the next AWS on AWS, and creates an entirely new (and strategically weaker) market segment of “PaaS” on top of “IaaS.”
replies(1):