that would cost us maybe $10k a month on the margin, and we could resell and manage it for nearly $50k a month. i'm betting amazon could milk it for $200k a month, possibly 2-3x that if it's GPU's.
What you're describing doesn't seem to be anything unique to cloud; it's something every business deals with. Figuring out the right market segmentation to deliver cheaper prices to those who are more price-conscious, and more functionality to those who can pay.
lol.
what you're actually saying, from the comfort of your aeron chair in an air conditioned office and not in the middle of a toxic datacenter, is "just outcompete amazon against a totally brainwashed, cost inelastic customer base who already fucking hates you out the gate since choosing against amazon is a huge career risk".
On the other hand, not being able to compete against the scale of major cloud providers makes sense. It's just not clear how that's related to you starting out with prices that were too low, for example.
i knew it was time to sell when prospective customers literally couldn't believe our prices. they thought we were full of shit, and accused us of being amateurs, fly-by-night scammers. and our prices weren't low - they just weren't insanely inflated like public cloud. we didn't deliberately try to undercut anyone on our quotes. it just started happening one day.
of course we raised our quotes to test the market but then they became too expensive for what we offered. lol. lmao. okay. as you can imagine running infrastructure is something people do not take lightly, so this is an uphill battle all the way. once you have no service or price edge the game is up.
so anyway, long story short, i can take a hint. i'm not nearly as smart as jeff bezos so it was time to gtfo of dodge. luckily with those 0% interest rates we found a buyer and anyone stuck in public cloud hell due to their own incompetence can kiss my ass because we fuckin' told you so.