One can safely add Amazon Web Services (AMZN) price cuts to life's short list of certainties. A...


One can safely add Amazon Web Services (AMZN) price cuts to life's short list of certainties. A few months after cutting storage prices for its popular S3 storage service by 24%-27%, AWS has cut S3 data retrieval prices by up to 60%. AWS has also been busy slashing prices for its EC2 computing service, DynamoDB database service, and much else, as it tries to maintain a pricing edge relative to Rackspace (RAX), Microsoft, Google, and others. Rackspace introduced cloud storage volume discounts last month.

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Comments (6)
  • HS
    , contributor
    Comments (212) | Send Message
     
    not surprising ... today, cloud computing is a commodity
    3 Apr 2013, 05:36 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1845) | Send Message
     
    But remember gross margins will be 100%!
    3 Apr 2013, 05:51 PM Reply Like
  • gensearch2
    , contributor
    Comments (1556) | Send Message
     
    AMZN may have the only business model [for AWS] where regardless of pricing, gross margin is always 100%.
    3 Apr 2013, 06:17 PM Reply Like
  • Vegas Ben
    , contributor
    Comments (212) | Send Message
     
    Can you explain that? Do they not have to buy servers, internet access, IT support, electricity, etc?
    3 Apr 2013, 07:04 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1845) | Send Message
     
    vegas ben: http://seekingalpha.co...

     

    of course it's not really 100% but amzn plays games with various metrics to keep charade going.
    4 Apr 2013, 12:29 AM Reply Like
  • gensearch2
    , contributor
    Comments (1556) | Send Message
     
    They stuff all those alleged expenses elsewhere to achieve 100% gross margins.
    4 Apr 2013, 11:08 AM Reply Like
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