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There's a really interesting strategic move here that I hadn't previously realized. Amazon is bundling some perpetual cloud service cost into their new connecti
by shimon 8y ago
There's a really interesting strategic move here that I hadn't previously realized. Amazon is bundling some perpetual cloud service cost into their new connectivity module. They're solving a cost problem for device makers in a way that can address a critical risk for consumers.
With perpetual cloud support, the long term maintenance costs of a novel connected device are much lower, and there's less of a chance that your smart devices suddenly die after a year or two when the manufacturer kills that product line. If done right, this could mean the ability to buy any off-brand or startup device product and not worry about losing ongoing support. This could significantly increase choices and lower costs for consumers, and gives Amazon an even more powerful voice in the ongoing direction of alexa-integrates products.
It's also a brilliantly unique move, in that no other company can offer the same blend of services around a smart home device. Conceivably, Amazon could enrich this with purchase and provisioning, i.e. every device sold through Amazon.com gets a certain lifetime support guarantee and arrives at your house provisioned for your wifi. This could make experimenting with new gadgets a lot lower risk.