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Amazon Retail would be an unsustainable mess without AWS.
by cameronbrown 7y ago
Amazon Retail would be an unsustainable mess without AWS.
- sinsterizme 7y agoWhy is that?
- jacques_chester 7y agoAWS 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 agoLol yes Amazon was definitely not a thriving company before AWS, good point.