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How was DO able to provide what AWS didn't want to? Was it purely margins?
by imglorp 2y ago
How was DO able to provide what AWS didn't want to? Was it purely margins?
- neom 2y agoAWS just really didn't want to, very different market segment. They were doing a pure enterprise play, looking to capture most of the enterprise. We were doing a b2c play that we presumed over time would suck us up into the SMB. My theory was we had like 1% risk from them. From what I could tell Jeff and Jassy had zero interest in our segment. I left just before the IPO but when we started it, the margin was about 60%, after we figured out how many VMs we could comfortable fit on the box, Ben U just did napkin math and said "50% seems like a fine enough margin to start"