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So what you're saying is kind of the opposite of a marginal cost. If they are recouping their costs, it's a capital expense, and works differently than a margi
by mrkurt 6y ago
So what you're saying is kind of the opposite of a marginal cost.
If they are recouping their costs, it's a capital expense, and works differently than a marginal cost. AWS's networking was extremely expensive to _build_ but it's not marginally more expensive to _operate_ for each new customer. Servers are relatively cheap to purchase, but as you add customers the cost increases with them.
If they're selling cheap instances are a marginal loss, that would be very surprising and go against everything I know about the costs of building out datacenters and networks.