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Commodity storage and delivery prices have been declining steadily. Building something that is scalable but also profitable, is hard. Still, selling is the har
by mv4 9y ago
Commodity storage and delivery prices have been declining steadily. Building something that is scalable but also profitable, is hard.
Still, selling is the hardest part, in my opinion. Source: run a global video cloud.
- nik736 9y agoSo you are exactly confirming what I am saying, they have or are building the sales team anyways.
- mv4 9y agoOne thing I didn't make clear, that may explain why somebody just wouldn't build their own storage/delivery: when certain services become a commodity, and long-term commitments become an exception rather than the norm - it's easier to shift the pricing pressure and uncertainty for the commodity side to your providers. You specifically don't want to "build your own" in a market like that, but instead focus on specialized, high-margin services. One exception: when you can predict/control the demand (e.g. you are a Netflix), then you build your own, and still leverage providers for capacity on tap.