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> giving any revenue to Amazon Amazon would be dumb to use AWS to cross-subside their retail business. That just hamstrings AWS, and gives other cloud vendors
by mr_toad 8y ago
> giving any revenue to Amazon
Amazon would be dumb to use AWS to cross-subside their retail business. That just hamstrings AWS, and gives other cloud vendors an advantage.
- Analemma_ 8y agoI don’t think AWS is literally cross-subsidizing the retail business, but it allows Amazon to keep running retail at essentially zero profit without bothering Wall Street. Even without direct subsidization, that’s a serious advantage that no one else can really hope to match.