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Rackspace's gross margin is 72.95%[0] and they are (or were) considered 'fat' (look at the margin trend in that chart to see how they have improved) Some estim
by nikcub 13y ago
Rackspace's gross margin is 72.95%[0] and they are (or were) considered 'fat' (look at the margin trend in that chart to see how they have improved)
Some estimate AWS's margins are up around 80% [1]
Competition, low cost hardware, building their own stack, open source etc. mean better pricing for us users
[0] http://ycharts.com/companies/RAX/gross_profit_margin http://ycharts.com/companies/RAX/gross_profit_margin
[1] http://blog.profitbricks.com/the-fake-cloud-price-war/ http://blog.profitbricks.com/the-fake-cloud-price-war/
- mgaphysics 13y agoI tried to Love AWS, but right now I just like their effort. There is something organically that feels right about the way DO has positioned themselves, they can always scale pricing based on additional features added. Yes, there margin is thin, but the the fact that the service is easy to use means less user support issues when adding them at 500 per day.