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A comment on Amazon’s Cloud Is Growing So Fast It’s Scaring Shareholders. Parent comment

Re:Amazon’s Cloud Is Growing So Fast It’s Scaring Shareholders by adventured on Sunday July 27, 2014 @06:11PM (#8094155)
That assumes customers do not eat all the computation gains. That's an incorrect assumption, cloud customers will always eat all computation gains. Every unit of extra power a customer can get at zero additional cost, they will consume. It's a corollary to Moore's Law, and it's why customers bother to upgrade processors each generation.

In the time Amazon's cost for 10 Ghz went down by half, the demand for processing doubled.

[ Parent | on HN ]
Re:Amazon’s Cloud Is Growing So Fast It’s Scaring Shareholders by clarky07 on Sunday July 27, 2014 @10:09PM (#8094762)
That's good news. If they offer X processing for the same price and demand doubles that means revenue doubles. If they get 2x supply for current 1x price then they just made more profit.

Just because computing gets cheaper doesn't mean they have to offer it for cheaper. It's likely competition will force the price down, but the point the parent is making is that the price of service doesn't have to come down as fast as the cost of service does. That would imply more profit without raising prices, merely holding them steady while costs go down.

[ Parent | on HN ]