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This is huge. Startups everywhere are huge beneficiaries of this price war between Amazon and Google over the future of cloud computing.

bane 13y ago
Let's just hope they all stay in business so we don't end up with only one player in the market...who can then jack up prices at will.
- rodgerd 13y ago
  Welcome to Amazon's long-term business model.
  - joshjdr 13y ago
    In some respects it's Google's model too. They gave away Google Apps free to small businesses for years as they pursued Microsoft's Exchange Server market. At first Google Apps was free for up to 100 users, then 50, then 10. Now they charge $5 per user per month for new plans. Legacy pricing is grandfathered so they didn't really piss anybody off in the process, but it seems pretty clear the strategy was to subsidize the product and accumulate market share.
- Already__Taken 13y ago
  Don't you think the start up costs for competitors are always going to be low enough to stop the incumbents going mad with it?
- w1ntermute 13y ago
  When it comes to companies like Google and Amazon, I don't think that's a worry.
  - bane 13y ago
    I'd actually be worried with Google. They've demonstrated a willingness to shut down revenue sinks even if it costs them good will. If these companies find themselves in a position that they're subsidizing their cloud computing offerings with profits made elsewhere, it might make more sense just to pull the plug.
    - res0nat0r 13y ago
      > They've demonstrated a willingness to shut down revenue sinks even if it costs them good will. Google isn't running a charity. Shutting down losing services is a smart business decision. If you see the cloud going the way of the typewriter, then you should also be looking elsewhere to run your computing resources.
      - bane 13y ago
        Yeah, I don't disagree at all. I think Amazon is making a longer term strategic move with AWS and is more likely to swallow a few years of not making any money than Google however. Of course a couple years ago I would have said the same about Google, but they've been on a bit of a tear recently where that doesn't seem to be as much the case anymore.
    - nabla9 13y ago
      Providing cloud computing services is bulk business where the economies of scale is important Google is itself cloud computing company. When they sell resources to others, it's way to become bigger and reduce cost margins for the platform they are using for themselves. As long as there are people who pay more for the Google cloud service than Google's own usage is worth, selling to others reduces the overall costs of computing for Google.
- beefsack 13y ago
  Somehow I don't thing a battle of attrition between Google and Amazon would end any time soon.
jarjoura 13y ago
Microsoft Azure too

bane 13y ago

Let's just hope they all stay in business so we don't end up with only one player in the market...who can then jack up prices at will.

rodgerd 13y ago
Welcome to Amazon's long-term business model.
- joshjdr 13y ago
  In some respects it's Google's model too. They gave away Google Apps free to small businesses for years as they pursued Microsoft's Exchange Server market. At first Google Apps was free for up to 100 users, then 50, then 10. Now they charge $5 per user per month for new plans. Legacy pricing is grandfathered so they didn't really piss anybody off in the process, but it seems pretty clear the strategy was to subsidize the product and accumulate market share.
Already__Taken 13y ago
Don't you think the start up costs for competitors are always going to be low enough to stop the incumbents going mad with it?
w1ntermute 13y ago
When it comes to companies like Google and Amazon, I don't think that's a worry.
- bane 13y ago
  I'd actually be worried with Google. They've demonstrated a willingness to shut down revenue sinks even if it costs them good will. If these companies find themselves in a position that they're subsidizing their cloud computing offerings with profits made elsewhere, it might make more sense just to pull the plug.
  - res0nat0r 13y ago
    > They've demonstrated a willingness to shut down revenue sinks even if it costs them good will. Google isn't running a charity. Shutting down losing services is a smart business decision. If you see the cloud going the way of the typewriter, then you should also be looking elsewhere to run your computing resources.
    - bane 13y ago
      Yeah, I don't disagree at all. I think Amazon is making a longer term strategic move with AWS and is more likely to swallow a few years of not making any money than Google however. Of course a couple years ago I would have said the same about Google, but they've been on a bit of a tear recently where that doesn't seem to be as much the case anymore.
  - nabla9 13y ago
    Providing cloud computing services is bulk business where the economies of scale is important Google is itself cloud computing company. When they sell resources to others, it's way to become bigger and reduce cost margins for the platform they are using for themselves. As long as there are people who pay more for the Google cloud service than Google's own usage is worth, selling to others reduces the overall costs of computing for Google.
beefsack 13y ago
Somehow I don't thing a battle of attrition between Google and Amazon would end any time soon.

jarjoura 13y ago

Microsoft Azure too