Earlier quoted context omitted.
> These cloud providers are, by definition, charging you more than it would cost you to run it yourself. That is _not_ a given. They're charging you more than it costs _them_ to run it. They get: - much lower hardware prices than you - lower bandwidth prices than you - likely lower electricity costs than you
The whole idea that since they have economies of scale, they must pass those savings on to you is a misunderstanding of how companies work. Realistically, a company will charge slightly less than whatever your alternative is, and they will provide products that restrict the number of alternatives you have. AWS, GCP, and Azure provide several differentiated products that lock you in to higher prices on everything else…
You're responding to someone who said "can," not "must."
What they said was "there's no requirement that cloud costs more than traditional hosting. Their scale allows them lower fundamental costs. They could outcompete traditional hosting on cost if they wanted to."
There's no misunderstanding of how comapnies work in what parent poster said; in reality they are 100% correct, and this is the path that CloudFlare is beginning to follow with services like workers and R2.