Count me among the people surprised that Amazon's cloud computing is profitable (with operating margins of 17%). I was sure that stiff competition was forcing everyone to sell at or below costs. Either this is that Amazon is in the lead (and can charge higher prices) or that they're more efficient with utilization. Either way, it's impressive and unexpected.
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- There's some evidence they're just able to charge more because of they're in the lead. Biased source, but see:
http://googlecloudplatform.blogspot.com/2015/04/understanding-cloud-pricing-part-2.htmlApr 23, 2015
- My collaborators use AWS because they are in the lead, and now they are accustomed to it.Apr 24, 2015
- My guess is that most of the margins are coming from bandwidth charges. 10c per gig!! About 9.8 of those pennies is margin.Apr 24, 2015