NextJS is awesome, but vercel as a business still doesn't seem to make sense to me.

There is a free tier and then pricing starts at $20/user/month. For unlimited usage in deploying and consuming static/generated/rendered content and APIs.

iiuc, vercel runs on aws. Isn't the math fundamentally flawed on this kind of a business model if it isn't backed by owning the compute/network substrate first? Egress charges would be brutal. Targetting gross margins of 60-70% sounds like it would be hard.

Would love to hear from VC/founders with their insights, esp for building dev tools businesses and "monetizing" frameworks which isn't something that's happened too often (or happened at all recently?)