@TonySheng wrote this great piece on how crypto companies differ from traditional companies when it comes to hosting data:
"For buying AWS, you minimize the cost of building datacenters and standing up a cloud service, minimize the execution risk of building the service, and can focus on the parts of your business your customers care about (e.g. ridesharing experience).
For building your own data centers, you minimize the cost paid to Amazon, you minimize the risk that Amazon censors or copies your business, and you don’t create new value.
Most companies believe that the net benefits of buying outweigh the net benefits of building cloud services. (Dropbox is a notable exception).
Why is this different for crypto projects?
Relative to traditional businesses, crypto projects have (1) higher risks from buying, (2) lower risks from building, and (3) higher potential value captured from building."