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They have Azure to compete with AWS, and now they want to make a run at the Kindle. Investing in B&N right now actually seems pretty smart. B&N is in need of he

by dkrich 15y ago

They have Azure to compete with AWS, and now they want to make a run at the Kindle. Investing in B&N right now actually seems pretty smart. B&N is in need of help, and for MSFT to start an eBook business from scratch would be very expensive. Microsoft offers more than just software. Just like Amazon sells the unused capacity of the servers running their own stores, Microsoft can do the reverse, using the unused capacity sold on Azure to host their own products. $300 million doesn't seem unreasonable for a company like Microsoft to become a major player in the eBook market. I'm actually very happy to see this. I don't want to see Amazon hold a monopoly on the eBook market.

dchest 15y ago
Just like Amazon sells the unused capacity of the servers running their own stores This isn't true. http://www.quora.com/Amazon/How-and-why-did-Amazon-get-into-the-cloud-computing-business/answer/Werner-Vogels http://www.quora.com/Amazon/How-and-why-did-Amazon-get-into-... "The excess capacity story is a myth. It was never a matter of selling excess capacity, actually within 2 months after launch AWS would have already burned through the excess Amazon.com capacity. Amazon Web Services was always considered a business by itself, with the expectation that it could even grow as big as the Amazon.com retail operation."
- dkrich 15y ago
  If that's true, then it is even better for Microsoft because Amazon would bring no competitive advantages to the fight that they could not replicate. Not sure why anybody would view that as a plus.
georgespencer 15y ago
> They have Azure to compete with AWS, and now they want to make a run at the Kindle. I get Azure, but I don't see why Microsoft are starting a fight on another front. The US ebook market could be up to $7bn by 2016, but B&N will have to invest a hell of a lot to keep their 25% market share with the price of Kindles being driven down all the time. (And let's not even mention iPad.) > Investing in B&N right now actually seems pretty smart. For almost anyone except Microsoft, IMO. > B&N is in need of help, and for MSFT to start an eBook business from scratch would be very expensive. I agree. I just think this is a fight Microsoft should be skipping. > Microsoft offers more than just software. Agreed. > $300 million doesn't seem unreasonable for a company like Microsoft to become a major player in the eBook market. Maybe I don't get it because I don't see anyone using Windows phones or tablets. I don't see anyone using the Nook, either, although apparently I should see 1/4 e-book readers using one. The money is being spent on international rollout and Windows [mobile] software development. Great. Now they're just reliant on Microsoft making a dent in the Android/iOS consumer love-in to gain traction there. > I'm actually very happy to see this. I don't want to see Amazon hold a monopoly on the eBook market. Totally agree that competition is a healthy thing. I'm just skeptical that we'll be looking back in ten years' time at an e-book market in which MS/B&N are anything other than utterly marginalised.

by dkrich 15y ago

dchest 15y ago

Just like Amazon sells the unused capacity of the servers running their own stores This isn't true. http://www.quora.com/Amazon/How-and-why-did-Amazon-get-into-the-cloud-computing-business/answer/Werner-Vogels http://www.quora.com/Amazon/How-and-why-did-Amazon-get-into-... "The excess capacity story is a myth. It was never a matter of selling excess capacity, actually within 2 months after launch AWS would have already burned through the excess Amazon.com capacity. Amazon Web Services was always considered a business by itself, with the expectation that it could even grow as big as the Amazon.com retail operation."

dkrich 15y ago
If that's true, then it is even better for Microsoft because Amazon would bring no competitive advantages to the fight that they could not replicate. Not sure why anybody would view that as a plus.

georgespencer 15y ago

> They have Azure to compete with AWS, and now they want to make a run at the Kindle. I get Azure, but I don't see why Microsoft are starting a fight on another front. The US ebook market could be up to $7bn by 2016, but B&N will have to invest a hell of a lot to keep their 25% market share with the price of Kindles being driven down all the time. (And let's not even mention iPad.) > Investing in B&N right now actually seems pretty smart. For almost anyone except Microsoft, IMO. > B&N is in need of help, and for MSFT to start an eBook business from scratch would be very expensive. I agree. I just think this is a fight Microsoft should be skipping. > Microsoft offers more than just software. Agreed. > $300 million doesn't seem unreasonable for a company like Microsoft to become a major player in the eBook market. Maybe I don't get it because I don't see anyone using Windows phones or tablets. I don't see anyone using the Nook, either, although apparently I should see 1/4 e-book readers using one. The money is being spent on international rollout and Windows [mobile] software development. Great. Now they're just reliant on Microsoft making a dent in the Android/iOS consumer love-in to gain traction there. > I'm actually very happy to see this. I don't want to see Amazon hold a monopoly on the eBook market. Totally agree that competition is a healthy thing. I'm just skeptical that we'll be looking back in ten years' time at an e-book market in which MS/B&N are anything other than utterly marginalised.