Google Wins In Amazon Cloud Price Battle - InformationWeek

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Cloud // Infrastructure as a Service
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3/28/2014
12:10 PM
Charles Babcock
Charles Babcock
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Google Wins In Amazon Cloud Price Battle

Let's put this week's cloud price cuts in context. Cash-rich Google has made it harder for Amazon to profit on AWS. Whether or not Google steals a ton of AWS customers, Google wins.

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jgherbert
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jgherbert,
User Rank: Ninja
3/31/2014 | 10:27:50 PM
Winner
And the winner is... the customer? Competition is good, isn't it?
David F. Carr
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David F. Carr,
User Rank: Author
3/31/2014 | 8:51:22 AM
Re: Google cash on hand: $58.7 billion
Amazon has also been a vicious competitor, undercutting entire industries on price, which I'd think would make it hard for them to cry foul.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
3/31/2014 | 1:14:49 AM
Re: Google cash on hand: $58.7 billion
"Google will have to ensure Amazon remains a viable competitor..." Google could slow Amazon's rate of expansion without arousing the scrutiny of the Anti-Trust Division, couldn't it? Google and Amazon don't compete directly in search. They do compete in cloud services,  but Amazon has a much bigger market share there. Even if Google were decreed a monopoly in search, Amazon isn't competing in search. Google would have to be using one monopoly to restrain trade or gain another before the Jusitice Department would have the legal basis to step in, and even then, it might have a tough time making a case. 
Gary_EL
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Gary_EL,
User Rank: Ninja
3/28/2014 | 11:17:33 PM
Re: Google cash on hand: $58.7 billion
Google will have to make sure that Amazon remains a viable competitor, or it will start to come under the scrutiny of the Federal Anti-trust authorities.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
3/28/2014 | 12:49:18 PM
Google cash on hand: $58.7 billion
They don't refer to cash assets in the same way, but at the end of 2013, Google had $58.7 billion in the bank and Amazon.com had $574 million. Which of these two balance sheets is hurt more by cloud service price cuts?
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