That reasoning could be used for everything and hence Apple is not a Hardware company. And it doesn't change the fact majority of Amazon revenue does not derive from Software. And should not be valued as such.
Re:IBM sues Airbnb for patent royalties
by triceratops on Thursday March 12, 2020 @06:25PM
(#22562557)
Apple designs and manufactures (albeit through contracting) their products from the silicon up. People who buy Apple products care about the hardware as well as the software. Nevertheless I agree with you, Apple isn't a pure-hardware company and the market doesn't value them like that. Their P/E ratio is 20-22, roughly in the same ballpark as Google or Microsoft (higher 20s)
People who use AWS don't care about the metal that it runs on, as long as it does the job.
> Amazon revenue does not derive from Software. And should not be valued as such.
Ok. But it is (I think - I don't know that much about valuations). If you're certain that's wrong, you shouldn't be arguing with strangers over the Internet, you should be off making money from that insight.
Cool, yeah, so you're saying if I go buy a bunch of servers and land I too can compete with AWS? It doesn't matter what software it runs?
The hardware and datacenter stuff is commodity. Table-stakes. Everyone has to have it. That's why they don't even manufacture the servers themselves. Software is where the value add is. This goes for any cloud provider, BTW.