So are margins low?
Source: I run a cloud company and have plenty of friends in the space.
It’s not shocking at all that margins are that high when a team pushes to pay AWS $40k a month for a static workload that could run on two racks of servers.
I would say “irrational when it comes to costs”. Not all developers ask questions such as:
Does paying 10K for convenience save me and my team more than 10k worth of time? Does this vendor make it easy to migrate out?
Of course I’m biased, because I like it better when the answers favor us, cloud vendors. But there are no catch all answers; as always, it depends.