In making this argument, you've missed the point of Amazon vs Google/Microsoft. From http://www.wired.com/techbiz/it/magazine/16-05/mf_amazon?currentPage=all h

In making this argument, you've missed the point of Amazon vs Google/Microsoft. From http://www.wired.com/techbiz/it/magazine/16-05/mf_amazon?currentPage=all http://www.wired.com/techbiz/it/magazine/16-05/mf_amazon?cur...: Bezos doesn't disagree. "I'd be surprised if no one else does this," he says, pausing for effect. "It's a really good idea!" And there may be an ace up his sleeve. Any economist will tell you that a commodity business -- storing and processing data, for instance -- is a mug's game, with prices that plunge inevitably toward the cost of production (in the case of bits, pretty close to zero). That's music to Bezos' ears. "Commodity businesses don't scare us," he says. "We're experts at them. We've never had 35 or 40 percent margins like most tech companies."