9 ms·
That doesn't seem high enough to justify halving prices unless it significantly increases revenue, which is pretty unlikely at this point.
by fooker 8y ago
That doesn't seem high enough to justify halving prices unless it significantly increases revenue, which is pretty unlikely at this point.
- jessaustin 8y agoBut OP's hypothesis is "It will make such a major impact on the internet as a whole that we will see lots of companies grow faster and newer video heavy apps launching." Disagree with that if you like, but if that's true then the revenue will take care of itself.
- CamperBob2 8y agoLosing money on every exabyte and making it up in volume?
- votepaunchy 8y ago90% margins -> cut prices in half -> lose money?!?
- fooker 8y ago20% Doesn't help to just consider network margins.
- jessaustin 8y agoThat's all we're talking about; thread parent said "reduce their public bandwidth cost to half". Obviously, you can argue that this price change idea is not strategically in AWS interest (AWS management agrees right now), but the trivial nitpicking ITT is misguided.
- deleted 8y ago[deleted]
- CamperBob2 8y agoWell, yes, if you're paying $1.00 per unit of bandwidth and selling it for $1.90, that's what will happen. What else would you expect? I suppose that could be interpreted as ~50% margins, rather than ~90%. Not sure how that calculation is actually supposed to be performed.