> serve entire world and doesn't need to spin up and shutdown VMs to meet global customer demand?
You said it yourself. Not all applications need to serve entire world, therefore demand will be lower when people go to sleep.
Even with global applications there are regulations that require you to host applications and data in specific regions. Imagine an application that is used by customers in Europe, Australia, and the US. They need to be served from regional data centres, and one cluster will be mostly sleeping when the other is running (because of timezones). With dedicated servers you would waste 60-70% of your resources, while using something like EC2/Fargate you can scale down to almost 0 when your region is sleeping.
You said it yourself. Not all applications need to serve entire world, therefore demand will be lower when people go to sleep.
Even with global applications there are regulations that require you to host applications and data in specific regions. Imagine an application that is used by customers in Europe, Australia, and the US. They need to be served from regional data centres, and one cluster will be mostly sleeping when the other is running (because of timezones). With dedicated servers you would waste 60-70% of your resources, while using something like EC2/Fargate you can scale down to almost 0 when your region is sleeping.