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"printing money" yes today, but if GCP/Azure or something else comes in and competes heavily the margins could easily shrink to something negative.
by rb808 6y ago
"printing money" yes today, but if GCP/Azure or something else comes in and competes heavily the margins could easily shrink to something negative.
- airstrike 6y agoNot necessarily negative margins, but low enough that EBITDA less Capex looks thinner and thinner
- jgalt212 6y agoI guess, but these products have such strong lock in.
- vl 6y agoThere are so few clouds, that it doesn’t work like this. When I saw it first hand the way it was done is prices were set to match competition. Occasionally somebody would reduce the prices, and others would match it. Since offerings are not exactly the same, there are variations, but overall for basic services like VMs and storage neither cloud will give you significant advantage in price.
- mbesto 6y agoSwitching costs.
- dangero 6y agoEven if Google’s prices were half that of Amazon’s, it’s really hard to quantify the savings since the platform offerings are not identical, plus engineering switching costs could easily outstrip a company’s yearly cloud costs.