3 ms·
hasn't there been a brutal multi-year price war between the large cloud vendors in favor of the customer?
by airza 10y ago
hasn't there been a brutal multi-year price war between the large cloud vendors in favor of the customer?
- ensignavenger 10y agoI don't know that it has been so brutal, by every account I have heard, successful cloud service providers are still extremely profitable.
- vidarh 10y agoIf it had been brutal, they wouldn't still be so ridiculously expensive compared to dedicated. They do what I wish I had done in my first startup: Realise that when your margins are massive and your main competition aren't dropping prices drastically, you don't rock the boat. You'll take your turn and drop your price a bit, and then let them take their turn and drop the price a bit, and you keep playing that game or as long as you can get away with it. (instead we went straight for the throat of our competition with much lower prices - two days later they decided to us the war-chest they'd built up over years to undercut us; nobody made any money in our market for the next several years) If they were fighting a price war, Amazon, Google and Microsoft would have issued multiple profit warnings over it. What they're doing is taking turns buying PR while trying hard not to trigger a price war.