Amazon Cloud Revenue Mystery Persists - InformationWeek
Amazon Cloud Revenue Mystery Persists
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User Rank: Apprentice
5/2/2013 | 6:12:40 PM
re: Amazon Cloud Revenue Mystery Persists
The IaaS offerings of companies like Amazon and Microsoft
have positive benefits that are trickling down to application developers.
Because of the inexpensive pricing for infrastructure companies that promote
application development are able to provide low cost or free platforms with
robust environments.

SaaS Maker is one good example of this which is hosted by
AWS. ItGÇÖs free for developers, has several widgets built-in for building apps and
offers an SDK for uploading custom consoles built in Java and PHP, et al.
AppFog is another good example of a cloud based IDE that is offered for free
for basic use of hosted system resources. You pick the language youGÇÖll use for
your app, one of three infrastructures and give it a name and youGÇÖre all set to
write code.
User Rank: Apprentice
5/1/2013 | 5:19:30 PM
re: Amazon Cloud Revenue Mystery Persists
I love this about the CEO. He clearly is looking 5-10 years down the road. Prices will not get cheaper for land. Fulfillment centers are a great investment. The moment you see Amazon pulling back from investing in infrastructure is the moment you should sell their stock. They know internet sales tax is coming, at that point the best way to compete is with a better network of fulfillment centers (they were holding back due to wherever they have a center it forces sales tax for that state). Once they have more centers, they can offer next day delivery or even within hours delivery. Enough centers and they can even either become their own delivery agents in certain areas, or allow UPS/Fedex to utilize warehouse space at the center.

There is just so much potential for savings and income growth here but in the physical sales side and the technical side. They don't even have that many Gold resellers in the field like Microsoft has. They start allowing tech shops to be Gold level resellers managing everything for mom and pop stores...

The most important aspect. Trust. Customers are learning to trust Amazon and Amazon customer support.
User Rank: Author
5/1/2013 | 4:00:26 PM
re: Amazon Cloud Revenue Mystery Persists
It is intriguing how they are still able to keep certain decisions / financial formulas shielded from rivals' eyes. Meanwhile, customers just keep seeing lower prices.

Laurianne McLaughlin
D. Henschen
D. Henschen,
User Rank: Author
5/1/2013 | 3:11:54 PM
re: Amazon Cloud Revenue Mystery Persists
The $ billions in revenue grow as they cut the price of service. And as the service scales they cut the price again. Nice model.

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