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0 pointsrtpg12y ago0 comments

I remember reading something about how AWS is pretty much running very close to at cost (super razor-thin margins, just like the Amazon shops themselves),but seeing these numbers seems to imply otherwise (20% is a big chunk of change).

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piggity12y ago

Amazon (the mothership) runs at a loss [1]

It is predicted that Amazon AWS runs at a huge margin [2]

Of course it's possible that these number are skewed by some Irish Whiskey Double Dutch Vegemite Sandwich tax avoidance system.

[1] http://venturebeat.com/2013/10/24/red-is-the-new-green-for-a...

[2] http://venturebeat.com/2013/09/05/amazons-mountain-of-margin...

raverbashing12y ago

"AWS is pretty much running very close to at cost (super razor-thin margins"

Compare the Amazon price with other VPSs.

It's a different service, yes, but it's not even close, not even if you reserve the instances (it's been a while since I did the math though)

But for small scale, I recommend strongly against AWS

nasalgoat12y ago

Isn't the opposite true? It's fine for under 10 instances when you're first starting up and still flexible, but over that you're better off going colo?

dmourati12y ago

I've described AWS as a great "deal" for very small and for very large customers. For people in the middle, not so much.

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