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So you think if Azure or someone offered the best prices compared to the competition they would be swamped in losses due to the increased demand? Or that they’
by randyrand 6y ago
So you think if Azure or someone offered the best prices compared to the competition they would be swamped in losses due to the increased demand?
Or that they’ve all decided to keep prices up to have similar demand and profit?
Neither of those make very much sense to me unless there is active collusion.
- noobaccount 6y agoPerhaps high bandwidth costs deter undesirable customers or usecases? A slight restatement of your idea. Just speculation.
- iscoelho 6y agoPrice is a race to the bottom. Nobody wants that. Look at Oil. None of them want to be known as the cheapest provider. They want to be the best provider. Twist on Argumentum ad crumenam [https://en.wikipedia.org/wiki/Argumentum_ad_crumenam https://en.wikipedia.org/wiki/Argumentum_ad_crumenam]: Fallacy that if it is more expensive, it is better.
- blueblisters 6y agoAzure and AWS both have their respective moats. Their locked-in customers would be up in arms if they decide to offer substantially lower rates to new customers. However, I am not sure what's holding Google back. They have all the right incentives to launch a price war but I guess they are focusing more on "value-addition" with ML cores, AI APIs etc.
- Can_Not 6y agoGoogle cloud has significantly cheaper prices and a more generous free tier than AWS, so they kind of already are.