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At Google's scale I would have guessed that they would have had no difficulty in matching and even beating Amazon's pricing. This is surprising. Why so?
by akshat 15y ago
At Google's scale I would have guessed that they would have had no difficulty in matching and even beating Amazon's pricing. This is surprising. Why so?
- orijing 15y agoEven if they could, why should they, if they don't have to?
- bdonlan 15y agoPerhaps they're looking to grow the service slowly initially? If they announced pricing significantly lower than amazon's right at launch they'd get a flood of new traffic that could overload however much resources they provisioned for launch. By starting out with a slightly higher pricing model, they can test out the service with production customers, and slowly reduce prices to attract more business when they're confident they can handle the load.