The cloud infrastructure market is officially seeing a price war. A day after Amazon (AMZN) cut...

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ubeenfranked Comments (196)
 
Wow. Amazon, how are those margins looking?
29 Nov 2012, 03:23 PM Reply Like

jmjjmj1 Comments (80)
 
Come on, everyone know Amazon does not need to make any money...they print their own....I know someday, somehow they will make up their losses in volume, right!?
29 Nov 2012, 03:43 PM Reply Like

Stock Guru123456 Comments (3)
 
You can only go so far with customer service, and if Rackspace is not going to cut price they are going to lose a ton of business. I don't know about you, but i'm sure Amazon and Google and Microsoft have comparable customer service, and maybe Rackspace is better but not 30% higher premium. This is nonsense
29 Nov 2012, 03:24 PM Reply Like

James Sands Comments (990)
 
Out IT dept. says they use Rackspace solely because of the service. With $RAX you are not left in the dark.....
29 Nov 2012, 03:50 PM Reply Like

Jeremy Johnson Comments (764)
 
My understanding is that Google's customer service is quite poor. They make up for it in the fact that their products typically work fairly well. I can't say my knowledge on this matter is great, but I would not be surprised is Rackspace genuinely had customer service that blew Google's away.

And from a consumer point of view, Amazon's customer service really isn't that great either. Their only response is to basically either take the item back or give you a discount. That is better than nothing (perhaps much better), but doesn't solve many of the problems that crop up. It turns their service into take it or leave it (but we'll make it very easy for you to leave it).

What customer service really is about is getting problems fixed, not just saying sorry we can't help you, but here is your money back.
29 Nov 2012, 04:48 PM Reply Like

racchole Comments (142)
 
Prices will be the main reference point for comparisons but customer service is no doubt the second-most important factor when choosing a provider. As more competitors enter the market, the customer service will bring the winners out.

I do not own shares of RAX but I may in the near future.
29 Nov 2012, 04:49 PM Reply Like

warrejt Comments (61)
 
We use Rackspace for the same reasons - reliability and great support.

People will pay for quality. If they continue what they started, they'll be able to avoid (mostly) the race to the bottom that Amazon and Google are playing.
29 Nov 2012, 04:54 PM Reply Like

Ron Reed Comments (195)
 
Really?! All the reasons you listed that they will continue to soar in the face of a price lowering, are the same reasons we all heard that Walmart would never succeed. How did that work out? Large companies that have low prices that get used by other large companies only need to court the top end management to win the contract; what the IT guys in the field have to deal with, well that is the cost savings to the company. I do grant that smaller companies and choice folks will pick the better service, but in the grand scheme they are small money. The large question becomes is that small niche enough to keep them afloat, and more important is it enough to justify the insane P/E that RAX has? I admit I don't think so. I think RAX is a great company, but they are way overpriced (stock price) and cannot justify it.
29 Nov 2012, 07:18 PM Reply Like

jmjjmj1 Comments (80)
 
You are going to cite RAX PE how about AMZN now that is a PE 2991
30 Nov 2012, 09:33 AM Reply Like

Ron Reed Comments (195)
 
I agree, AMZN is also extremely over valued and I have it shorted.
30 Nov 2012, 10:11 AM Reply Like

HZLIU Comments (172)
 
The cloud storage is mission-critical product. I will pay more to get reliability and super customer support. If it is shoe, I will return it if I don't like it.
29 Nov 2012, 09:25 PM Reply Like