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> There are fun, technical, “control your own destiny” reasons to rack hardware instead of layering on top of commodity clouds. But it's really just economics. ... Hardware is what makes the margins work.

Amen to that.

Nice to see somebody who has raised a ton of money, and yet is still being smart with it.

But I suppose the difficult question is, "Why shouldn't Fly's potential customers also run their own hardware?"

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They should, probably. We have partner-like customers who are paying actual hardware costs and then a platform fee for us to manage it.

You can only build so many company margins on top of capital expenditures.

I don't think there's enough expertise in running hardware out there, frankly. For a company where running hardware isn't their bread and butter finding and hiring people who can do it, and do it well, is existentially risky. It is hard enough to find people who can properly run on a PaaS.

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