>AFAICT, this hasn't happened for any "cloud" compute company that has been in business for -say- at least five years.
Most cloud software has had moats. AI does not. And AI is eating software, which means those historical margins are going away for a lot of cloud software,too. That's what the SAAS-pocalypse is about.
>Assuming that you're not doing anything that needs exotic system administrators
Remember, these are also going to be AI.
>Assuming I haven't fucked up my math, [2][3] the cost of the hardware here is more than three times the cost of power.
This is a fair point, but it just means the COGS is higher, not that the margin is any better. I stand by the prediction that AI margins will be very slim.
Most cloud software has had moats. AI does not. And AI is eating software, which means those historical margins are going away for a lot of cloud software,too. That's what the SAAS-pocalypse is about.
>Assuming that you're not doing anything that needs exotic system administrators
Remember, these are also going to be AI.
>Assuming I haven't fucked up my math, [2][3] the cost of the hardware here is more than three times the cost of power.
This is a fair point, but it just means the COGS is higher, not that the margin is any better. I stand by the prediction that AI margins will be very slim.