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Microsoft: Cloud services demand up, prioritization rules in place

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Re: Microsoft: Cloud services demand up, prioritization rules in place

#81
post #43
post #37

Earlier quoted context omitted.

Slack’s video conferencing sucks. They bought ScreenHero and tried to integrate it. They screwed it up so bad that the ScreenHero founder quit after 4 years and has gone and rewrote it and called it Screen: https://news.ycombinator.com/item?id=22676040

Yeah Slack themselves use Zoom. Slack is a channel based messaging tool, it integrates with best of class video tools like Zoom and file storage tools like Box or even SharePoint. Teams does it all OKish, although the channel based messaging is probably the worst part. It's sort of wrong to look at Teams as a Slack replacement. Well, it is for who just want chat, and don't care about channel messaging.

Integration seems like the ideal path for Slack. Make it easy and seamless to use any third party service from Slack rather than trying to build functionality directly into it other than the core group/direct chat stuff.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#82
post #46
post #17

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Working with all three of them, so here's my two cents: 1. Mostly traditional, "legacy" companies have been hit hard by this. Ones that don't have culture or technology of work-from-home. Those companies use some Microsoft products. Also, Microsoft has been poaching them heavily, handing out trials, bundling licenses and so on. A lot of them don't actually buy stuff from Microsoft, but through 3rd party vendors which…

I think Azure also has more regions than AWS, but yet a smaller overall capacity probably, so it's gotta be harder to keep space capacity. It's notable the shortages are isolated to specific regions. They were possibly small to start and so it probably didn't take as much to hit capacity there? Just a guess.

That's my hunch also... Speaking for someone interested in IaaS/VDI, not all instances are available in all regions. For example, instances with GPUs are available only in North and West Europe. If you need them, and they are out of stock, you have no value of any UK or France region.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#84

Earlier quoted context omitted.

It would certainly look bad, and I think it would potentially be illegal in some states. https://consumer.findlaw.com/consumer-transactions/price-gou... For example, Georgia: > Selling items or services determined by the Governor during a declared state of emergency to be necessary for public safety at a higher cost than they were immediately prior to the declaration. Kansas: > For any supplier of a "necessary proper…

Does this regulation applies to the entire supply chain? Otherwise it might become unreasonable to produce some goods at all if component cost raises too much.

If you are making bread and suddenly price of flour increases by 600%,so you have to increase your prices. Unless you are based in a country run by some delusional autocrat, you'd be fine. If, however,the supply chain is fine, i.e. your toilet paper supplier, however you end up selling it for 500% price because people can't seen to have enough of it- the the laws would apply.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#85
post #57

Earlier quoted context omitted.

It would certainly look bad, and I think it would potentially be illegal in some states. https://consumer.findlaw.com/consumer-transactions/price-gou... For example, Georgia: > Selling items or services determined by the Governor during a declared state of emergency to be necessary for public safety at a higher cost than they were immediately prior to the declaration. Kansas: > For any supplier of a "necessary proper…

I don’t know how I feel about this. In the general case, I feel like price gouging during emergencies is unethical. But, when there is a non-artificial supply and demand issue, I struggle with the derivative effects of these policies. My concern is that rather than simply evaluating on the consumers ability to pay (and backwards-looking at prior statements instead of increased go-forward costs), these policies add on…

Ability to pay is only one aspect of demand. There’s also how much you actually want it, and the amount of opportunity cost you’re willing to pay. Keeping prices artificially low keeps demand artificially high, while supply doesn’t increase, or cannot increase if it’s inelastic.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#86

Earlier quoted context omitted.

No it's not.. The market is not sane atm. It's 100% emotion.

What makes you think that? Have you seen a discrepancy between your projections of future cash flows and therefore your valuation, as compared to the value the market is at right now?

I think it's safe to say the market isn't rational when Zoom Technologies is up nearly 900% when it's completely unrelated to Zoom Video and not actually operating.

There's a different HN post about it: https://www.nasdaq.com/articles/the-sec-really-wants-investo...

Re: Microsoft: Cloud services demand up, prioritization rules in place

#87
post #57

Earlier quoted context omitted.

I don’t know how I feel about this. In the general case, I feel like price gouging during emergencies is unethical. But, when there is a non-artificial supply and demand issue, I struggle with the derivative effects of these policies. My concern is that rather than simply evaluating on the consumers ability to pay (and backwards-looking at prior statements instead of increased go-forward costs), these policies add on…

Ability to pay is only one aspect of demand. There’s also how much you actually want it, and the amount of opportunity cost you’re willing to pay. Keeping prices artificially low keeps demand artificially high, while supply doesn’t increase, or cannot increase if it’s inelastic.

> There’s also how much you actually want it, and the amount of opportunity cost you’re willing to pay.

Money doesn't have much relation to opportunity cost in the presence of enormous wealth inequality. An unemployed person willing to pay their entire bank account of $100 for some good clearly wants it more than a work-from-home tech worker willing to pay the $600 they made yesterday.

The same applies to businesses using cloud services. A struggling local business has a ludicrously low cap on what they can pay for Teams compared to Walmart or something.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#88
Office365 and AzureAD has been even more unreliable than usual over the past week or so, plenty of "an error has occurred" pages and delayed mail - as usually Microsoft didn't update the status dashboards (the ones you can see without being able to log in anyway), The other client I work with uses GCP and Google Mail/Docs for business which I haven't noticed any issues with.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#89

Earlier quoted context omitted.

Right. It's important to the public that scarce goods instead by allocated by willingness to stand in line. What does standing in line mean for a corporation that could be anywhere in the world? Maybe some kind of proof-of-work scheme for the CEO or majority owner? Azure could service VM creation requests in the order of their creation, but "take a number" doesn't work as well. The opportunity cost of what else you c…

> It's important to the public that scarce goods instead by allocated by willingness to stand in line. It's important to keep in mind that a higher price is unlikely to lead to much additional capacity due to the nature of this shock. Companies have to do business with their customers for many years after this is over. "Sorry, we're overloaded with demand due to this crisis" sounds a lot better than "Pay us ten times…

"Sorry, we're overloaded with demand due to this crisis" is "go f* yourself."

Although you're right, Microsoft may have correctly assessed that its customer relationships will turn out better if it leaves them completely hosed vs. hosed with an unpleasant escape hatch.

It's still an interesting question: what kinds of allocation systems are best when for whatever reason market pricing is off the table? There are certainly better and worse approaches within the space of lotteries, queues, etc.

Re: Microsoft: Cloud services demand up, prioritization rules in place

#90

Leave it up to Microsoft to find out ways to profit more during a pandemic, rather than open sourcing their software and platform to be used anywhere and everywhere. People forgot what hosting is like without these massively overpriced cloud services that nickel and dime for every feature. Want encryption which basically costs nothing? Oh, you'll pay an extra $0.10 per hour on top of your $.08GB of outbound traffic.…

Microsoft made Office 365 and Teams free for six months [1], made it free to UK NHS staff during the outbreak[2], Teams usage is up 12 million users in a week[3]. At a normal price of $5/user/month, they've given a third of a billion dollars of stuff away.

But yeah, it would be more helpful in these trying times if the NHS had the sourcecode to BizSpark, DirectX, and Office Graph backend. :|

[1] https://www.microsoft.com/en-us/microsoft-365/blog/2020/03/0...

[2] https://www.windowscentral.com/microsoft-teams-available-nhs...

[3] https://www.zdnet.com/article/microsoft-teams-usage-up-by-12...

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