The Managed Memo
The Managed Memo
@TheManagedMemo

<b>The passthrough nobody mentions</b>

<b>The passthrough nobody mentions</b>

Word is several managed hosts that run on top of a single hyperscaler are quietly absorbing, then passing through, that provider's latest egress and compute price bumps.

Most managed platforms don't own metal anymore, they resell someone else's cloud with a management layer on top. So when the underlying provider raises rates, your 'managed' host has two choices: eat it or pass it on. A source tells us most are choosing the second, with a lag of a quarter or two to muddy the link.

Unconfirmed exact margins, but the upstream increases are public.

Watch this: when your host raises prices 'due to rising infrastructure costs', that phrase is usually true, and usually about someone else's bill.
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