4 ms·
> Microsoft has around a 70% margin at Azure. I find this impossible to believe, given they are far from a monopoly here. Where are you getting the figure?
by sebzim4500 3y ago
> Microsoft has around a 70% margin at Azure.
I find this impossible to believe, given they are far from a monopoly here. Where are you getting the figure?
- vlovich123 3y agoI don’t find it surprising that SaaS list price margins could be that high. The big purchasers do volume discounts to get massive discounts while the smaller players are forced to pay more.
- sebzim4500 3y agoIf MSFT and AMZN are making a 70% margin then why wouldn't google accept a 30% margin and eat their lunch?
- vlovich123 3y agoNo because the overhead and uncertainty involved with smaller customers means they cost more and are less loyal / locked in and thus represent more risk. The smaller customers represent very little revenue in the short term and if one grows to any real size negotiations with sales begins.
- cma 3y ago72% gross margin on Azure: https://www.microsoft.com/en-us/investor/earnings/fy-2023-q2/performance https://www.microsoft.com/en-us/investor/earnings/fy-2023-q2... None of the cloud providers are monopolies, but there are few enough they can collude through tit for tat, though at times I think some were run for growth at a loss. I believe all have multi thousand percent margins on egress bandwidth.