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this post was submitted on 17 Nov 2023
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It’s much cheaper than equivalent hardware at home- redundant hardware, hot spares, redundant power, UPSes and generators, etc. And good network access with really good peering arrangements- something residential ISPs can’t offer.
That said, do most people need all that? No.
It’s just like AWS. AWS makes sense for a narrow swath of businesses - businesses that can’t afford the capex to run their own data centers and have needs more advanced than less expensive services. Any company over a certain size isn’t going to pay the 10x premium for AWS over their own data centers and infrastructure. But for small businesses with advanced needs it’s the only way to afford things.