AWS obviously does the same but better. That's why they are so rich. Their cost is a tiny percentage of their revenue. They buy cheap servers, and then run lots of vms on them. Each of which delivers 10s/100s of $ per month. That server pays for itself in revenue within weeks/months. And it will be in service until it stops working which could be over five years. Same with storage, networking, gpus, etc. They've spen…
> AWS at cost price would probably be 60-80x less than what they charge; if not more. If you look at https://ir.aboutamazon.com/news-release/news-release-details... , it says in 2024, > AWS segment sales increased 19% year-over-year to $107.6 billion. > AWS segment operating income was $39.8 billion, compared with operating income of $24.6 billion in 2023. So about 59% margin, relative to costs. Everybody undercuttin…
keep in mind that cost there is likely to also be including personnel. probably a significant fraction if you consider how many employees amazon's aws division has.