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.
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.