Seeking Alpha

Google ups game in cloud-computing dogfight

  • Google (GOOG) has made its Compute Engine cloud service generally available as it moves to further compete with Amazon Web Services (AMZN), Microsoft's (MSFT) Azure and IBM's (IBM) offering.
  • Google has cut prices for its infrastructure-as-a-service offering by 10%, is providing access to larger and more complex computing, and it guarantees that critical projects will remain working 99.95% of the time.
  • Photo-swapping service Snapchat is an early user of Compute Engine, processing 4,000 pictures a second on Google's servers. (Blog)
Comments (4)
  • Sooner or later AMZN lovers are going to realize that competition in all areas of their business will keep them from ever making the kind of profits that justify the lofty price. All of their competitors, including GOOG know how to make money and profits are ultimately what determines the value of a business.
    3 Dec 2013, 10:29 AM Reply Like
  • lol yeah right all of the players dont make much in this space
    4 Dec 2013, 12:30 AM Reply Like
  • I wonder how Amazon's competitors with much, much stronger balance sheets felt about Bezos' fifteen minutes of fame on 60 Minutes Sunday night....promoting delivery by drone.

     

    Would Amazon's competitors feel Bezos deserved that recognition like they might feel Warren Buffet would earn the recognition of being on 60 Minutes?

     

    Or would Amazon's competitors say...."what's going on here, this guy's company doesn't even make any money, is this a joke"?

     

    And assuming the people running Amazon's competitors, have an ego, and also realize that their companies do have stronger balance sheets; would Bezos' 15 minutes of 60 Minutes fame cause Bezos' competitors to "square the joke off"?

     

    Just wondering?
    3 Dec 2013, 01:01 PM Reply Like
  • The evidence is accumulating that the cloud business is going
    to be low price and low profit margin business. All these major
    players, Microsoft, Google, Amazon and IBM are creating lot
    of capacity with high fixed cost. They have to offer low price
    to utilize the capacity and absorb the fixed cost.
    Google and IBM make high margin on other businesses.
    Amazon doesn't have any high margin business. Now it is
    entering "grocery" business- another low margin business.
    Amazon's stock run up looks risky. The correction will inflict
    heavy losses on the likes of Stephen Drukenmiller.
    3 Dec 2013, 04:26 PM Reply Like
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