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VIST was able to rent capacity, and to expand production as demand grew.
In New England, utilities are required to rent capacity — in other words, pay the plant to be available — in an amount equal to the peak power they bought, and a reserve.
This is complex and expensive: It means establishing encrypted links between countries, preferably on a dedicated network (take advantage of Google's anger against the NSA to rent capacity), and putting servers in countries like Iceland – a libertarian country and also one of the most connected in the world.
Rather than building such a fleet just for their own usage, or reaching out to others to rent capacity on their delivery fleets, the Rickshaw founders thought it made more sense for to work on solving the delivery problem for a bunch of different companies.
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Unlike other bidders, Debital operates using rented capacity.
Virgin Mobile proved a telecoms operator could be a "virtual" operation renting capacity from other networks.
Included in that spending is the company's investment in Amazon Web Services, a lucrative business through which Amazon rents capacity in its data centers to independent companies.
The company now has more than 220 petrol stations, and TNK uses its refinery for its own oil, rather than renting capacity cheaply to outsiders.
New competitors such as Amazon and Rackspace Hosting have jumped into this market and are trying to persuade companies they would be better off renting capacity "in the cloud" than buying their own servers from the likes of Dell and HP.
The shift to cloud computing is accelerating this: smaller firms, which hitherto might have preferred a trusted brand of server, are increasingly renting capacity from giant server farms, which are happy with unbranded ones.A broader shift illustrated by HP's break-up is that diversification is something only the brightest tech stars can get away with.
By renting capacity on the industrial-strength servers and beefy Internet connections in its data centers to anyone willing to pay for it, Amazon has become the virtual landlord of choice for technology start-ups, including the likes of Instagram and Foursquare.
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CEO of Professional Science Editing for Scientists @ prosciediting.com