Amazon S3 Cuts Prices

October 10, 2008

Om Malik’s “Amazon Cuts Prices on S3” provides a run down of the new AWS fees. My quick look through the prices made me think that Amazon wants to get more small, price-sensitive outfits on the service and pull more high volume users. But Amazon’s accountants with sharp pencils craft prices that take some analysis to figure out. Mr. Malik’s article summarizes the data about the “success” of AWS. You can read the story here. I tucked this article in my Amazon folder. I am still waiting for Amazon to produce hard data about the revenue from AWS. I want to see how the company can do so much with its modest R&D and technology budgets. I also want to see how much of the cost of the ecommerce infrastructure is really offset by the AWS play. Talking to me about “objects” means zilch. Talking to me about money does. Is there a reason Mr. Bezos and his wizards refuse to break out financial data. Because of the object-fuscation, I am not sure what “success” at Amazon means. Readers with insight, feel free to post. In the meantime, read Mr. Malik’s article.

Stephen Arnold, October 10, 2008


2 Responses to “Amazon S3 Cuts Prices”

  1. Otis Gospodnetic on October 10th, 2008 3:02 pm

    I haven’t seen the numbers with my own eyes, but I have read reports of Amazon providing the numbers in their quarterly reports. Things I read said the numbers were relatively small, of course, but I don’t know if and how they are growing.

  2. Stephen E. Arnold on October 10th, 2008 9:21 pm

    Otis Gospodnetic,

    Better check. Amazon does not provide detailed financial break outs. The data for AWS are quoted in terms of meaningless units without baseline values or dollar figures attached. I think it is the Bezos way. He is, according to my sources, the world’s smartest man. I don’t find “objects” a satisfactory substitute for dollars.

    Stephen Arnold, October 10, 2008

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