$32 is inexpensive?
Yah, they are better, faster, and cheaper. I’m going to quote myself from a review I posted on the elixirforum.
So agree that it’s a bit of a cause for concern, but from my inquiry last year:
Strategically, they are going with partnerships rather than building/providing higher-margin services which is interesting now that they have funding. Infrastructure work has a much longer leadtime compared to regular software, but also requires much less maintenance once complete and scales out pretty well.
Unfortunately, that also requires hiring well and if you don’t do it well, failure is pretty much guaranteed. So totally understandable if they want to avoid it during their current phase, but DigitalOcean also started with just droplets and now they have managed everything.
If they start building higher-margin services, strategically, it makes sense to keep the VM prices low. Otherwise, well, it starts to get tricky. And hopefully, they keep running it without a sale because then the new owner generally starts milking the customer base.
So my professional opinion as a random person on the interwebs, we probably have a few years of this while they figure it out.
Kurt once blogged that Fly prices at 70% margins.
From the outside, it seems as if Fly is going for the classic “change the game” by positioning itself as an “Application Delivery Network” (which is at a much higher-level than merely providing infrastructure services).
While their GTM resembles Tailscale’s.