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Having huge sprawling swarms of VMs is, for some teams, a problem to be solved, not a fact of life to be designed around.

Sry I'm not getting your point.

If I understand it right: VMS were not there because people needed VMS they were there because people needed compute.

We moved everything to k8s and we were able to do this because k8s can

The point is to deliver a small set of applications, not to come up with the most horizontally scalable possible deployment fabric.