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I think the high price is to amortize the Annapurna Labs acquisition and to pay for NRE. Now they will own the entire vertical stack like Apple, but unlike App

I think the high price is to amortize the Annapurna Labs acquisition and to pay for NRE. Now they will own the entire vertical stack like Apple, but unlike Apple, Amazon can live on minimal margins. BTW, apparently I predicted it in 2011 ;) "Rumors about ARM-based EC2 instances from Amazon this year. Also SSD based EBS. #aws #ec2 #arm #ssd #cloud #amazon 3:14 AM - 27 Feb 2011" https://twitter.com/nivertech/status/41667359487823872 https://twitter.com/nivertech/status/41667359487823872

simonh 8y ago
> I think the high price is to amortize the Annapurna Labs acquisition and to pay for NRE. I don't think that's a useful way to think about pricing a product or service. The price has to be driven by the market, not your costs, which means ultimately your costs have to be driven by the market as well or you're done for. I suspect they're pricing this a little high because they don't have a lot of them yet, meanwhile plenty of people will pay a bit extra to get a chance to try this out and do proof-of-concepts on them. As long as the market created by the latter matches the availability due to the former, this will work out fine for Amazon. They can always lower prices as these become more mainstream. Novelty value can be real value.
- londons_explore 8y ago
  Neither google nor microsoft have ARM CPU's yet, so there is as-yet no price competition.
  - reitzensteinm 8y ago
    Only for situations where ARM is an absolute requirement, which are few and far between.
  - dboreham 8y ago
    Packet.net (bare metal cloud hosting vendor) have ARM instances.
  - floatboth 8y ago
    Scaleway. FOUR ThunderX cores for THREE € per month. AWS offers one core for TWENTY $ and with the typical extra charges… excuse me but what the actual fuck?!?!
  - ofrzeta 8y ago
    Linaro has an ARMv8 cloud, too: https://connect.linaro.cloud https://connect.linaro.cloud
deleted 8y ago
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simonh 8y ago

> I think the high price is to amortize the Annapurna Labs acquisition and to pay for NRE. I don't think that's a useful way to think about pricing a product or service. The price has to be driven by the market, not your costs, which means ultimately your costs have to be driven by the market as well or you're done for. I suspect they're pricing this a little high because they don't have a lot of them yet, meanwhile plenty of people will pay a bit extra to get a chance to try this out and do proof-of-concepts on them. As long as the market created by the latter matches the availability due to the former, this will work out fine for Amazon. They can always lower prices as these become more mainstream. Novelty value can be real value.

londons_explore 8y ago
Neither google nor microsoft have ARM CPU's yet, so there is as-yet no price competition.
- reitzensteinm 8y ago
  Only for situations where ARM is an absolute requirement, which are few and far between.
- dboreham 8y ago
  Packet.net (bare metal cloud hosting vendor) have ARM instances.
- floatboth 8y ago
  Scaleway. FOUR ThunderX cores for THREE € per month. AWS offers one core for TWENTY $ and with the typical extra charges… excuse me but what the actual fuck?!?!
- ofrzeta 8y ago
  Linaro has an ARMv8 cloud, too: https://connect.linaro.cloud https://connect.linaro.cloud

deleted 8y ago

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