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You don't need to establish product-market fit when you have the coercive power of the state. after you build the product, you can mandate the fit.

This thinking is exactly why this continent is failing in terms of technology.

You don't have to establish product market fit in order to provide services to your own institutions. It's a great idea to piggyback on your own needs to create services that could be expanded to the general public.

Only if allocating resources to in-house data centers does not take away resources from the product.

If you're Google sure throw a 100 people at a project that might get pivoted or axed. It won't matter. But a Government IT initiative? They have to be more efficient.

They maybe had 100m of ‘free’ hardware kicking around after the failure of Microsoft and Telekom’s German cloud offering…

Agreed, but that isn't a good way to spend a lot of taxpayer money.