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The analysis ignores the basics: AWS controls the supply. At some point there’s a limit to that control via supply chain (meaning they wouldn’t be able to make
by milesward 3y ago
The analysis ignores the basics: AWS controls the supply. At some point there’s a limit to that control via supply chain (meaning they wouldn’t be able to make it cheaper when they want to) but if the number is going up, it’s pretty likely that’s totally intentional.
- deleted 3y ago[deleted]
- ericpauley 3y ago"Ignore" is a pretty strong word here. This is an analysis of demand. Of course Amazon controls supply, but allowing compute to sit idle at these price points is not profitable so we can assume that they are selling available compute. The question then is whether aggregate instance demand is increasing with respect to available supply and pushing prices up. You'll have to explain what you mean by "intentional" given raising prices above market equilibrium would leave compute idle (again, very unlikely). In that way amazon is just a market actor (albeit a large one) just like customers.