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Discussion: The Price War Over The Cloud Has High Stakes For The Internet

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This week, our tech reporting team is exploring cloud computing — the big business of providing computing power and data storage that companies need, but which happens out of sight, as if it’s “in the cloud.”

It’s a timely topic, since there’s a price war going on as tech titans aim to control the cloud market. Amazon Web Services, an arm of the e-commerce giant, is the reigning king of large-scale cloud services. If you’ve ever watched streaming TV on Netflix, clicked on a Pinterest pin, or listened to music on Spotify, you’ve used Amazon Web Services, or AWS.

“We delivered computing power as if it was a utility,” says Matt Wood, Amazon Web Services’ chief data scientist.

A decade ago, startups and other Internet companies had to set up their own data centers and computing backbones, which meant a serious capital investment up front and fairly fixed computing resources.

Top Comments

Neo_Liberal

This is a huge development. The WSJ ran an article a week or so on this. Amazon has apparently reached the tipping point on cost and the others will soon enough; they have deep enough pockets to get there. This has already begun to change the landscape of computing and it will continue to do so. It simply makes no sense anymore for businesses to run anything except their core applications themselves and it may not make sense to do that.

This is not just some fad. The cost differential from this price war is a game changer. If this pricing is not temporary, every company should be looking to exploit this and begin adjusting their strategic plans.

 

Chris Branid

Not to plug companies either, but came across this article as well pertaining to the subject. I think the point of how to differentiate beyond price is still going to factor in to this race. http://www.codero.com/blog/aws…

 

Hancle

They cut prices to gain competitive edge and market share. Wonder when cell phone service providers might start cutting their ridiculously high prices. Probably never.

More Here: http://www.npr.org/blogs/alltechconsidered/2014/04/23/305894296/the-price-war-over-the-cloud-has-high-stakes-for-the-internet

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