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So much worse for American companies. This only means that they will be uncompetitive with similar companies that use models with realistic costs.

raw_anon_1111 11mo ago
I can’t think of a single major US company that is big internationally that is competing on price.
- ipaddr 11mo ago
  Any car company. Uber. All tech companies offering free services.
  - raw_anon_1111 11mo ago
    Is a “cheaper” service going to come along and upend Google or Facebook? I’m not saying this to insult the technical capabilities of Uber. But it doesn’t have the economics that most tech companies have - high fixed costs and very low marginal costs. Uber has high marginal costs saving a little on inference isn’t going to make a difference.
  - jamiek88 11mo ago
    What American car company competes overseas on price?
    - necovek 11mo ago
      All the American cars (Ford, Chevrolet, GM...) are much cheaper in Europe than eg. German cars from their trifecta (and other Europe-made high end vehicles from eg Sweden, Italy or UK), and on par with mid-priced vehicles from the likes of Hyundai, Kia, Mazda... Obviously, some US brands do not compete on price, but other than maybe Jeep and Tesla, those have a small market penetration.
- re-thc 11mo ago
  > I can’t think of a single major US company that is big internationally that is competing on price. All the clouds compete on price. Do you really think it is that differentiated? Google, Amazon and Microsoft all offer special deals to sign big companies up and globally too.
  - raw_anon_1111 11mo ago
    I worked inside AWS consulting department for 3 years (AWS ProServe) and now I work as a staff consultant for a 3rd AWS partner. I have been on enough sales calls, seen enough go to market training materials and flown out to customers sites to know how these things work. AWS has never tried to compete as the “low cost leader”. Marketing 101 says you never want to compete on price if you can avoid it. Microsoft doesn’t compete on price. Their major competitive advantage is Big Enterprise is already big into Microsoft and it’s much easier to get them to come onto Azure. They compete on price only when it comes to making Windows workloads Bd SQL Server cheaper than running on other providers. AWS is the default choice for legacy reasons and it definitely has services an offerings that Google doesn’t have. I have never once been on a sales call where the sales person emphasizes that AWS is cheaper. As far as GCP, they are so bad at evterprise sales, we never really looked at them as serious competition. Sure AWS will throw credits in for migrations and professional services both internally and for third party partners. But no CFO is going to look at just the short term credits.
    - re-thc 11mo ago
      > AWS has never tried to compete as the “low cost leader”. Marketing 101 says you never want to compete on price if you can avoid it. Despite all that and whatever you say, the fact is you do compete. It doesn't have to be a race to the bottom. So Cloudfront free tier and the latest discount bundles etc aren't to compete? People have also negotiated private pricing way below list price and a lot cheaper than competitors. Similarly was the Dynamodb price cuts not due to competition? I can give way more examples...
      - raw_anon_1111 11mo ago

raw_anon_1111 11mo ago

I can’t think of a single major US company that is big internationally that is competing on price.

ipaddr 11mo ago
Any car company. Uber. All tech companies offering free services.
- raw_anon_1111 11mo ago
  Is a “cheaper” service going to come along and upend Google or Facebook? I’m not saying this to insult the technical capabilities of Uber. But it doesn’t have the economics that most tech companies have - high fixed costs and very low marginal costs. Uber has high marginal costs saving a little on inference isn’t going to make a difference.
- jamiek88 11mo ago
  What American car company competes overseas on price?
  - necovek 11mo ago
    All the American cars (Ford, Chevrolet, GM...) are much cheaper in Europe than eg. German cars from their trifecta (and other Europe-made high end vehicles from eg Sweden, Italy or UK), and on par with mid-priced vehicles from the likes of Hyundai, Kia, Mazda... Obviously, some US brands do not compete on price, but other than maybe Jeep and Tesla, those have a small market penetration.
re-thc 11mo ago
> I can’t think of a single major US company that is big internationally that is competing on price. All the clouds compete on price. Do you really think it is that differentiated? Google, Amazon and Microsoft all offer special deals to sign big companies up and globally too.
- raw_anon_1111 11mo ago
  I worked inside AWS consulting department for 3 years (AWS ProServe) and now I work as a staff consultant for a 3rd AWS partner. I have been on enough sales calls, seen enough go to market training materials and flown out to customers sites to know how these things work. AWS has never tried to compete as the “low cost leader”. Marketing 101 says you never want to compete on price if you can avoid it. Microsoft doesn’t compete on price. Their major competitive advantage is Big Enterprise is already big into Microsoft and it’s much easier to get them to come onto Azure. They compete on price only when it comes to making Windows workloads Bd SQL Server cheaper than running on other providers. AWS is the default choice for legacy reasons and it definitely has services an offerings that Google doesn’t have. I have never once been on a sales call where the sales person emphasizes that AWS is cheaper. As far as GCP, they are so bad at evterprise sales, we never really looked at them as serious competition. Sure AWS will throw credits in for migrations and professional services both internally and for third party partners. But no CFO is going to look at just the short term credits.
  - re-thc 11mo ago
    > AWS has never tried to compete as the “low cost leader”. Marketing 101 says you never want to compete on price if you can avoid it. Despite all that and whatever you say, the fact is you do compete. It doesn't have to be a race to the bottom. So Cloudfront free tier and the latest discount bundles etc aren't to compete? People have also negotiated private pricing way below list price and a lot cheaper than competitors. Similarly was the Dynamodb price cuts not due to competition? I can give way more examples...
    - raw_anon_1111 11mo ago