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Could be either, but note that Amazon has a history of introducing new products at or below cost and then gaining a profit margin by keeping their prices fixed
by cperciva 13y ago
Could be either, but note that Amazon has a history of introducing new products at or below cost and then gaining a profit margin by keeping their prices fixed while their costs drop. A while back I heard that the fully loaded cost (to Amazon) of m1.small was $0.15/hour when EC2 launched, but they priced it at $0.10/hour because they knew their costs would drop and they wanted to win market share.
- pvg 13y agoThat history may actually be over as Google is aggressively undercutting them and they are scrambling to match pricing. Glacier now costs the same as a Google drive, except drive has none of the restrictions. AWS on-demand prices have been cut so much they've actually left some of their prepaid discount prices ('reserved instances', in their parlance) higher than what they sell on demand.
- cperciva 13y agoGlacier now costs the same as a Google drive, except drive has none of the restrictions Only if your usage is exactly equal to the maximum usage from one of Google's pricing tiers.