Adding an unnecessary $200/month to your burn rate is silly, but if it'll kill your business then there isn't a viable business model there in the first place.
He'd only have needed, say, 10 paying customers to cover his expensive hosting. The fact he couldn't get those first 10 customers is why he failed, not the hosting costs.
He'd only have needed, say, 10 paying customers to cover his expensive hosting. The fact he couldn't get those first 10 customers is why he failed, not the hosting costs.