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People said the same thing about AWS: "Hardware is a commodity, how can they possibly turn a profit renting out hardware?"


It's more that they bill by the capacity used and it's possible to cancel at any time.

Same way a WeWork is more expensive than renting your own real estate but it's probably simpler than getting into a long term lease. Plus if your startup has to scale up WeWork can accommodate, unlike your typical office rental.




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