Re:AWS Drives More Than Half of Amazon's Operating Income
by busterarm on Saturday February 02, 2019 @02:34AM
(#19061709)
Microsoft did it pretty easily because they have the financial flexibility to make a multi-billion dollar investment and already have a global enterprise sales and support organization with a 20 year head start on the competition.
Facebook can't say the same and getting 100 datacenters up and running would cost them 25 billion before hiring anyone -- that's more than half of their cash.
I agree with you though that it makes zero sense for Facebook to do this.
although it's outside facebooks current core competency i think they wouldn't have too many issues getting into the cloud game if they wanted to. they could hire all the expertise they need and get 100 data centers up and running in 5 years.
but why would they? it's like google getting into the ISP market to compete with verizon et al. google runs its very profitable business on top of the commodity rails and keeps limited deployments of google fiber as a stick to threaten slow or uncooperative ISPs. facebook can run its profitable software based businesses on top of the infrastructure instead of joining the cutthroat race to the bottom of cloud computing that may or may not be semi nationalized/regulated as ISPs and utilities are today