Replying to Avatar semisol

In software, where the recurring cost is maintenance (and can be bound to a few years per edition), it is much easier to model one time edition fees (which is a good model!)

But in “cloud” the recurring costs are not time-bound and there is no product without recurring costs.
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ChipTuner 2mo ago 💬 1

Accurate and fair. I would agree lifetime is too far out. At least on the hardware side of things, it generally apears to be within about the 60-month lease window where prices are somewhat stable. When new hardware is released from Nvidia, or Dell, or HP, give it about 1-2 years for machines to ship, then cost of new products and derivative products go up, and old harware sells of in proportion to new hardware prices.

Meaning new hardware has steadily increased in MSRP, and older hardware prices fall in proportion. So machines appear to be losing their value "slower".

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semisol 2mo ago

Renting at least gives you the option to upgrade to newer hardware without much cost change, at an overall premium in prices. But it also means you do not need someone in the DC to do physical work.

Anything more than a few years also reduces your flexibility, and increases the "lag" between cost changes if any happen => you passing them on => you getting paid