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by Kocrachon 2542 days ago
I wonder if that mentality with change if/when AWS splits from AMZN.
2 comments
cameronbrown 2542 days ago
Amazon Retail would be an unsustainable mess without AWS.
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leesec 2542 days ago
Lol yes Amazon was definitely not a thriving company before AWS, good point.
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sinsterizme 2542 days ago
Why is that?
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jacques_chester 2542 days ago
AWS has much fatter margins than retail.

There are substitutes for AWS, but the switching cost is relatively high. Whereas for toothpaste, breakfast cereal, toasters, books etc etc the substitution is perfect (I can buy the same brands from many companies) and switching cost is low (I pull out a credit card).

Insofar as Amazon has a large free cashflow coming off AWS after capital improvements, it can use that money to (a) attract cheap funding from Wall St to (b) build, build, build.

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Ericson2314 2542 days ago
Dear God I hope the FTC cleaves vertically not horizontally.
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