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I was just thinking the exact opposite of this in the shower this morning. Amazon is one of the few businesses I'm aware of that goes out of its way to keep it
by jasonkester 16y ago
I was just thinking the exact opposite of this in the shower this morning.
Amazon is one of the few businesses I'm aware of that goes out of its way to keep its profit margin consistent, to the point of regularly lowering the price it charges for its AWS offerings.
It's in their best interest to do so in the long run. Sure, they could fix prices and watch as a 1U EC2 instance gets more profitable over time and 100GB S3 bucket does the same, but eventually somebody else would build a business by squeezing in at a lower price.
As it stands, Amazon has the Cloud game beaten. They're just miles ahead of the next guy. Since the only reason to consider switching is price, it's a genius move on their part to keep walking the price down. If you want to beat them, you have to figure out how to build a better product and squeak it in cheaper.
I just don't see that happening.