Say all of those costs are $2,000,000, and you have 25,000 billable endpoints in the datacenter… you’re looking at less than $0.01/hour for that overhead on a unit basis.

Obviously, there’s a huge capital investment component too that has to be incorporated. Those costs may be really high if you’re in a growth phase as you need to overbuy capacity.

Just to be clear, I’m not arguing that on-prem is magically cheap. :) But it has its place too!