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Google Turns Up The Heat On Amazon
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Lorna Garey
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Lorna Garey,
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3/25/2014 | 4:31:14 PM
Re: Race to bottom or race for marketshare?
Yes. Hard to see how even Cisco and Microsoft can keep the pace, much less smaller vendors. WAN providers may be the biggest winners.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
3/25/2014 | 3:55:31 PM
Race to bottom or race for marketshare?
I view it, Lorna, not as a race to the bottom but a race for marketshare. Moore's Law keeps making the infrastructure to supply end users cheaper, so some price cutting is in order. But Google can't cut prices 32% several times a year and stay very far above zero pricing. It seems implausible in the present environment but if marketshare is decided in favor of one vendor and others fade, prices could edge back up.
Lorna Garey
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Lorna Garey,
User Rank: Author
3/25/2014 | 3:41:37 PM
Price war
Charlie, Not only all these new offerings, but Google just slashed prices significantly, right, something like 32% for IaaS? How low can costs go and still allow providers to innovate and add new functions? I'm sure no IT pros are complaining, mind you, but a race to the bottom on cost seems incompatible with adding new capabilities.


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