Hacker Read

dilyevsky · 2023-08-06 12:31:02

10-20% cheaper than similar sized non-flex unit. They only rent these to companies so I'm guessing it reduces the demand pool.

eru | karma 30335 | avg karma 1.29 · | 2010-09-13 21:13:45

Reduced cost per unit often leads to greater demand.

YayamiOmate | karma 322 | avg karma 2.95 · | 2019-09-23 07:57:21+00:00

Smoother scaling and lower entry cost as well.

It seems obvious that at scale, someone running machines for you could not be cheaper, unless they had access to technology allowing to operate at lower costs or cheaper electricity.

Renting can't be cheaper than at scale under normal circumstances. OP was beyond the breakeven point.

reply

dragonwriter | karma 118260 | avg karma 2.17 · | 2013-09-29 16:05:51+00:00

A larger, more efficiently priced unit can be shared by multiple people, reducing the distinction between "most efficient price" and "lowest cost".

aaronblohowiak | karma 7361 | avg karma 2.49 · | 2018-04-21 17:58:19

At that price they are competing with options that you don’t have to babysit, which is a big advantage if you are commercial operator.

terryschiavo22 | karma 52 | avg karma 0.83 · | 2019-04-15 14:31:34+00:00

I would guess that the cost savings are negligible. It's about convenience foremost.

Jonnax | karma 6035 | avg karma 5.76 · | 2019-01-17 13:06:01+00:00

It's beneficial to their customers and reduces their costs.

mikrotikker | karma 166 | avg karma 0.28 · | 2024-01-04 21:45:36

IMO it's cost saving.

paxys | karma 66162 | avg karma 7.18 · | 2018-07-19 16:47:07

Large customers always pay lower negotiated per-unit prices due to volume.

mises | karma 1585 | avg karma 1.73 · | 2019-04-16 17:57:14+00:00

People in charge like it because it's cheaper. It means less excess capacity is needed.

pm | karma 971 | avg karma 2.19 · | 2017-04-24 06:43:01+00:00

Because it's cheaper and more efficient to have them onsite.

jlemoine | karma 1042 | avg karma 5.95 · | 2020-07-03 12:35:37+00:00

It is also less expensive and more accessible for mid/large volumes. We have built-in volume discount in the pricing that reduce significantly the price at scale

wpdev_63 | karma 493 | avg karma 1.22 · | 2018-08-14 03:40:34+00:00

They're going to save soo much money not having to lease space in major cities along the coast because of this. Hardware is pennies on the dollar in comparison.

jacques_chester | karma 23379 | avg karma 2.58 · | 2013-02-27 07:31:48

Because it's more profitable for them to charge more.

deepnotderp | karma 4485 | avg karma 2.3 · | 2018-02-23 20:39:48+00:00

Cost advantage.

forsaken | karma 2107 | avg karma 7.72 · | 2013-07-22 04:25:29

It saves money. That's at least one advantage.

layer8 | karma 23301 | avg karma 2.59 · | 2023-10-26 09:38:13

It gives them more flexibility and reduces competition. It’s quite common in B2B, for products/services in that pricing range.

doikor | karma 2617 | avg karma 3.57 · | 2023-09-26 03:59:49

It is also cheaper both to buy and operate.

myroon5 | karma 2275 | avg karma 3.82 · | 2017-09-26 18:56:52

I imagine this matters less for the larger customers spending a lot in this space.

YinLuck- | karma 14 | avg karma 0.22 · | 2019-01-25 22:05:08

Because you will be buying it for less than the cost of the equipment in that plant + some of the best talent + their domestic customer list thrown in for free.