IBM’s Old Playbook

Re:IBM’s Old Playbook by illumin8 on Monday October 29, 2018 @03:27PM (#18330483)

> At some point most large companies will play their hand and raise prices to more closely match the cost of switching off the platform. (i.e. the MO of Oracle/IBM)

I don't see AWS doing this. They've continuously implemented technology improvements that have allowed them to reduce costs for customers 67 times in the last 10 years. The price of cloud services always goes down, not up, over time, as you're able to realize the benefits of improvements in compute power for the same cost (Moore's Law) without upgrading hardware.

Disclaimer: I work for AWS, but my opinions are my own.

[ Parent | on HN ]

Re:IBM’s Old Playbook by roymurdock on Monday October 29, 2018 @04:22PM (#18331003)

You are thinking like a software engineer, not a product manager or owner of capital.

If any of these companies is able to extract monopoly profits without fear of competition undercutting them or government/legal intervention, they will.

Right now all 3 are competing fiercely to win the hardware rental market, but this may not be the case in the future once the market matures, and they may raise prices to match leaving costs (as parent comment pointed out) if they can lock customers in.

[ Parent | on HN ]

Re:IBM’s Old Playbook by user5994461 on Monday October 29, 2018 @05:34PM (#18331737)

I have to +1 this.

The price must always go up over time. If there were a first rule of business, that would be that.

Price decrease is just a longer term strategy where it goes down before it goes up.

[ Parent | on HN ]

Re:IBM’s Old Playbook by cbnotfromthere on Wednesday October 31, 2018 @10:43AM (#18346078)

The amount of implicit absurdity behind your words is astonishing. Basically outside die-hard Marxists nobody takes such claims seriously, because it implies lack of competition.

Hint: the cloud market has PLENTY of competition.

[ Parent | on HN ]