You are right for probably 60% of customers. For someone spending $3k/mo on cloud on a company doing $500k/yr of revenue then going down to $1k/mo on cloud for a less tried and true product (us) is likely a bad idea.

Similarly for a mom-and-pop bakery (contrived example) hosting a website for $60/mo, going down to $20/mo (just to keep the 1/3 ratio) also is probably not worth it.

But some of our customers are not like that. For example a hedge fund we have been working with needs 512G RAM and 256 vCPUs for a mortgage model. The data size is not too big and once they get their results they rip it back to on-prem. The complexity is low, ie they just ssh in and do their models. Often they let them run over the weekend.

And these guys are very price-sensitive. In their industry, saving money means more carry for partners and bigger bonuses for quants. These guys are counting nickels.

So I think you're totally right for the large part of the market that we're not really for, and we're not really competing for those types of customers. But we're not really providing much managed service, we're providing a commodity that, assuming you don't need the high-complexity ecosystem surrounding it, can be very nice for customers who are price-sensitive.