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How the economics of multitenancy work


With millions of jobs running monthly on our bare-metal fleet, we've seen the economics of multitenancy hold up — here's a peek behind the curtain of how the math works.

In the early days of Blacksmith, back when we were just a scrappy YC startup building a serverless cloud platform for CI workloads, we ran simulations to model our margins. Now, we’re running thousands of jobs every minute and millions every month, and it’s been exciting to actually see this play out at scale and watch the math work in real life. Once utilization is high, the next major lever to keep improving margins is driving down the cost of acquiring machines — and for that time of day plays a surprisingly big role.

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