Cohen, on his excellent blog Elastic Vapor, describes the conundrum facing many of the startup cloud providers: Step one, build a cloud: buy some blades, a little storage, get a nice web interface up and running. Cool. Step two, find customers for a totally generic, undifferentiated compute service.
This will probably be an entry level service with little differentiation. The important aspect to pricing will be in the areas where you’re different. Maybe you offer a premium storage or load balancer, or advanced security or something I haven’t even thought of. The more value you provide the more you can charge for your services.
Which sounds to me like you then have to figure out how to become a complex managed hosting provider. That should be a super easy thing to do, right?
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