Re:As Amazon Mimics Google’s Price Drop, Cloud Computing Gro...
by Aqueous on Sunday March 30, 2014 @03:44PM
(#7497598)
and how can you reduce the price without operating at a loss? if you left room to reduce prices. so yes, it does show that.
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Re:As Amazon Mimics Google’s Price Drop, Cloud Computing Gro...
by nl on Sunday March 30, 2014 @06:30PM
(#7498262)
It's quite possible that Amazon and/or Google is prepared to operate their cloud (or some parts of their cloud) at a loss, or at least at zero margins. Look at Amazon's financial statements and you'll find they operate almost all their business on zero margin.
The reasons for that differ - Amazon optimises for growth and market domination over profits, while Google doesn't want to see Amazon control the entire cloud market.
Re:As Amazon Mimics Google’s Price Drop, Cloud Computing Gro...
by avalaunch on Sunday March 30, 2014 @04:39PM
(#7497804)
You're making an assumption that they aren't now operating at a loss. I don't think they are but I wouldn't assume it. It wouldn't be the first time they've operated at a loss in an attempt to corner the market.