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by rgbrenner 3904 days ago
Careful. My previous startup was a storage company that competed with Amazon and Google when they were charging 0.10/gb and I calculated it should be around 0.02/gb. A few months after launch, they both realized it too and dropped their prices. Leads dried up overnight.

The high prices seem to persist until one day they don't.

1 comments

Yea, we considered this - but if Amazon and Google compete with us I'll consider it a personal success :)
They compete against you whether they know you exist or not because your customers/prospects know Amazon/Google/etc exists.

It only takes one of the large players to break the pricing stalemate, and overnight they'll all follow to keep their position in the market.

I sort-of agree with you, but in this case I believe it will persist for years to come, as they have faced competitors charging far less for bandwidth for years already and pretty much ignored it.