Management are actually playing it really smart as server space is expensive and they are not certain about the popularity of the app or any bugs that may occur when it is stress tested.
Server space is not as problematic as the initial set up architecture to handle how people use your product. The servers are in Azure and will grow with any growth (agreed at a cost but that will be based on volume) , but if you get your basic architecture wrong and place the wrong components in the wrong place it is very hard to fix them later.
Once they are confident that they have it right it is pretty easy to set up new instances in the Azure environment at centers of your choice around the globe. The cost does kick in due to growth, but their storage should be minor so grunt is what they will be buying and they will only need grunt due to usage, at which point they have proven their model.
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