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I like that Amazon is sharing the benefits of their massive scale with their customers. Though, by keeping their margins slim, they'll make it increasingly har
by veesahni 14y ago
I like that Amazon is sharing the benefits of their massive scale with their customers. Though, by keeping their margins slim, they'll make it increasingly harder for smaller vendors to compete.
- calinet6 14y agoNot a bad thing in their book!
- mpyne 14y agoIn fact I would wager a guess that's the whole idea for them. Kind of a variant of "Peace by way of superior Firepower".
- xxpor 14y ago"Your margin is my opportunity" - Jeff Bezos
- dbarlett 14y agoExactly. Interesting piece by a former Amazon employee: http://www.eugenewei.com/blog/2012/11/28/amazon-and-margins http://www.eugenewei.com/blog/2012/11/28/amazon-and-margins "If you have bigger lungs than your competitor, all things being equal, force them to compete in a contest where oxygen is the crucial limiter. If your opponent can't swim, you make them compete in water. If they dislike the cold, set the contest in the winter, on a tundra. You can romanticize all of this by quoting Sun Tzu, but it's just common sense."
- btgeekboy 14y agoI think this is going to come into play quite heavily with Amazon Cloud Drive vs. Dropbox, given that Dropbox uses S3. Disk space will always be cheaper for Amazon.
- nwenzel 14y agoCloud storage companies reduce their costs and storage needs by analyzing stored content to find duplicate content (and I would think partially duplicate content) so that they can store only single copies. I think BitCasa offers unlimited storage. They had stated some time ago that they can offer unlimited storage because their algorithms for content matching were very effective at limiting what they actually had to store. Size becomes a competitive advantage.
- btgeekboy 14y agoI agree, but anything Dropbox can do, Amazon can do too, including dedupe. And if Amazon owns the disks, they get to benefit from Dropbox's usage in terms of economies of scale, but without having to pay an outside vendor for the privilege.
- jasonzemos 14y agoExcept Amazon can't dedupe what dropbox has already deduped. It's hard to tell if they're really an ideal customer.
- btgeekboy 14y agoTo be clear, I meant that Amazon can dedupe what is uploaded through their Dropbox competitor, vs. the ability to dedupe Dropbox's data as it hits S3.
- rgbrgb 14y agoAmazon is in this funny position where they can't help but compete with their clients because almost every internet company is their client.