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You should tell AWS about that race to the bottom while they continue to produce a majority of Amazon's profit.

• mike_d 4y ago
  Advertising is way more profitable than AWS. https://www.forbes.com/sites/jasongoldberg/2022/02/04/amazon-reveals-its-most-profitable-business/ https://www.forbes.com/sites/jasongoldberg/2022/02/04/amazon...
  • phpisthebest 4y ago
    That is based on huge assumptions, and it is unclear how the internal billing works (i.e is the Ad business consuming AWS services "free" or is there internal chargebacks happening). Is the AWS Revenue just from external customers using the services.
    • vineyardmike 4y ago
      > is the Ad business consuming AWS services "free" or is there internal chargebacks happening AWS bills Amazon an internal rate. It’s a closely held secret that few employees know but supposedly it’s better than at-cost.
      • yazaddaruvala 4y ago
        It is not secret. There is an internal spreadsheet that documents all the prices. Everyone has access! Everyone I worked with at Amazon knew the prices they were spending for the different services they were using or thinking of using.
      • nerdbert 4y ago
        How could that work? Don't managers have budgets? Do they get drugged and blindfolded while their departments' AWS costs are deducted every month?
  • jahewson 4y ago
    > While Amazon did not disclose the operating income generated from their ad business, it is almost certainly bigger than the income generated by AWS Not exactly making a strong case.
    • deleted 4y ago
      [deleted]
  • abledon 4y ago
    heres a sankey diagram of q3 FY 2022 for Amazon...https://imgur.com/a/OupE8ES https://imgur.com/a/OupE8ES. (from https://www.appeconomyinsights.com/p/amazon-day-1 https://www.appeconomyinsights.com/p/amazon-day-1) Ads + Twitch = 9.5B, AWS = 20.5B
• doktorhladnjak 4y ago
  Someone can still win a race to the bottom. Look at Walmart a generation ago in retail.