This is brilliant because the main cost of running gear is power draw (PDUs / electrical circuits). Having OEM/ODM blade ARM setup a-la sgi cloudrack/supermicro is the way to drive costs to the floor, in a Backblaze/Google way. Unfortunately, it's a "Dell/Walmart model" hypercommodity where such a business has to maintain massive customer subscriptions to stay cash positive and still just trickles in $.<p>It's an interesting space, but if I were launching a cloud IaaS/VPS, I would probably optimize for the other extreme of "Apple model" premium/full-service expensive hosting that has fantastic uptime, gear and sales/support for enterprise/startup and IT/web operations... There's some more money in that and less headaches. (The most money seems to be in the upper-middle pricepoint area.)