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Economics teaches us that a big difference between cost and price attracts competition which should make the price trend towards the cost.
by barrkel 6mo ago
Economics teaches us that a big difference between cost and price attracts competition which should make the price trend towards the cost.
- _el1s7 6mo agoExactly.
- ncruces 6mo agoOnly if the barrier of entry is low. Which it won't be, if at every turn you choose the hyperscaler.
- stingraycharles 6mo agoIf this is the case, cheap bandwidth for AWS, when?
- dns_snek 6mo agoPractice taught me that that "should" is doing a lot of heavy lifting here and it's often not the case, even across long time periods (years) that should allow competitors to emerge. For example I calculated the cost of a solar install to be approximately: Material + Labour + Generous overhead + Very tidy profit = 10,000€ In practice I keep getting offers for ~14,000€, which will be reduced to 10,000€ with a government subsidy and my request for an itemized invoice is always met with radio silence.
- conductr 6mo agoEconomics has a lot of other lessons teaching us why prices of major clouds have remained somewhat expensive relative to cost
- _bohm 6mo agoA big difference between cost and price is often won at the expense of many years of concerted R&D, though