5 ms·

I wonder if that mentality with change if/when AWS splits from AMZN.

• cameronbrown 7y ago
  Amazon Retail would be an unsustainable mess without AWS.
  • sinsterizme 7y ago
    Why is that?
    • jacques_chester 7y ago
      AWS has much fatter margins than retail. There are substitutes for AWS, but the switching cost is relatively high. Whereas for toothpaste, breakfast cereal, toasters, books etc etc the substitution is perfect (I can buy the same brands from many companies) and switching cost is low (I pull out a credit card). Insofar as Amazon has a large free cashflow coming off AWS after capital improvements, it can use that money to (a) attract cheap funding from Wall St to (b) build, build, build.
  • leesec 7y ago
    Lol yes Amazon was definitely not a thriving company before AWS, good point.
• Ericson2314 7y ago
  Dear God I hope the FTC cleaves vertically not horizontally.