This is just like cloud computing. Where you just pay for devices that are not on your premises but managed by specialized people. Its an interesting concept and worthy to be invested if the company is legitimate.
Indeed it was a very interesting concept until it was exploited by people who want to take advantage and scam people. Cloud mining used to be a profitable venture way back eons ago but not anymore. Aside from that there are lots of cloudmining company that shutdown or turn to other business models because of the undesired result. I am also one of those who invested in this kind of offer but later found out that it wasn't giving me enough profit. Luckily I sold my hashes (it was allowed to sold hashes to other people) before the company shut down the operation months after.
Unfortunately due to the unregulated nature of crypto there is a scam in every category. One technique is never to jump with huge capital rather start with a small amount and check whether project is legitimate or not. Always DYOR before investing in any project.