Your price point and the clouds margin is tied to not sitting on lots of unused instances. you want there to be adequate capacity not excessive capacity
It goes both ways: cloud providers don’t want to make promises about capacity, and cloud users don’t want to make promises about usage.
I don’t know about price point. Dedicated servers can be cheaper than cloud in many cases, if you have the appropriate know-how, and the cloud business is very profitable for a reason.
