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Hopefully with Microsoft and Google getting in the game we'll get some competition and that margin will reduce
by tdb7893 9y ago
Hopefully with Microsoft and Google getting in the game we'll get some competition and that margin will reduce
- davidkuhta 9y ago... or that the margin stays the same, and they're able to further innovate and offer additional value!
- rajnathani 9y agoMSFT also had earnings today. They beat with a (sustained) strong growth in their cloud biz.
- s17n 9y agoQuestion is whether those companies will culturally be able to compete in a low-margin space. I don't know anything about Microsoft but wrt Google I've often thought that the insane margins on the search ads business have made it institutionally difficult for the company to take any low-margin business seriously. Amazon on the other hand has been all about razor thin margins since day one.
- sangnoir 9y ago> Question is whether those companies will culturally be able to compete in a low-margin space. 25% is a fat margin: why would you say this is a low-margin space?
- s17n 9y agoPost I replied to was imagining a world where margins go down, which seems very plausible, compute is a commodity.
- Analemma_ 9y agoI don't know... on Microsoft's earnings call today, a couple of finance suits specifically asked them about how they intend to grow cloud margins, so I don't think this is incoming. Amazon/Microsoft/Google tried a brief cloud price war a few years back and it all led to them being right back where they started, so I wonder if there's a MAD-ish incentive not to do that again.