1. They are already an investor in Amazon. They have an interest, both in the actual spending and the trend setting of current and future companies to use AWS.
2. It is actually increasingly hard to get an industry wide reputable hosting provider ( Cloud, VPS , Metal or not ) that many investors could agree upon. Just like you said which makes DD harder.
3. Amazon actually offer heavy discount and even lots free credit to startup by accredited VC. Meaning the difference in the first few years is actually tiny. And in your example, if it can be run on $500 budget elsewhere you can bet it will literally be free on AWS from those startup.
2. It is actually increasingly hard to get an industry wide reputable hosting provider ( Cloud, VPS , Metal or not ) that many investors could agree upon. Just like you said which makes DD harder.
3. Amazon actually offer heavy discount and even lots free credit to startup by accredited VC. Meaning the difference in the first few years is actually tiny. And in your example, if it can be run on $500 budget elsewhere you can bet it will literally be free on AWS from those startup.