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Alright, let's take a look at that first link as if it's gospel. AWS charging excessively for inter-AZ networking is: 1. a microeconomic pricing strategy 2. w
by hansvm 2y ago
Alright, let's take a look at that first link as if it's gospel. AWS charging excessively for inter-AZ networking is:
1. a microeconomic pricing strategy
2. where largely similar goods (AWS with or without substantial inter-AZ bandwidth)
3. are sold at different prices (excessive inter-AZ networking fees) to different buyers
4. based on perceived market segments (most customers don't need (or don't know they need till they're locked in) much inter-AZ bandwidth, but larger, richer corporations likely do)
I'm not trying to blur the lines. On top of any juggling of our favorite sources of definitions, that particular pricing strategy has all the qualitative hallmarks of price discrimination. Everyone still buys AWS, most customers are unaffected by the lack of bulk inter-AZ bandwidth, and AWS can successfully charge much more to those who can afford to pay.