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Oh hellz yes. I was there. Like rhizome says, it's a bigger factor than that; you can host stuff in the cloud now for nothing when we had to cohost a used Sparcstation for, as I recall, $450 a month. That was 1996, and we could only do that because we knew the hosting company in Bloomington.

I glommed space on that machine for my own stuff for free - but I still had to pay $20 a month to host the DNS!!

$450 a month isn't that much for an investor. It's nothing compared to salary.

But I guess that the old Sparcstation could only handle a tiny load. Scaling it up to thousands of customers would have been very expensive.

Scaling? Well, fortunately, the online population was a lot smaller then, and we were targeting a niche (machine tools) - we still had some scaling issues, but nothing at all like you'd have to worry about now.

But yes - if we'd had to, it would have gotten expensive pretty quick.

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