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But as of where we are now, it is a good abstraction to get there. It provides a lot of stuff like service discovery, auto-scaling and redundancy. Yes you do need to have instances to run K8s, but that is as of date the only abstraction that we have on all cloud providers, local virtualization, and bare metal. So yes it isn't true on demand "cloud" but in order to work like that you need to fit into your service provider's framework and accept limitations on container size, runtime, deal with warm up times occasionally.