Re: big deal
That is very funny Nicho, but also in some ways very profound.
Not sure what having 2 trillion objects means in terms of how important this business is for making money now, and in the future. These seem to me to be dumb racks which don't have any unique or Amazon specific attributes which would force anybody to stay within their ecosystem, or be beholden to them. As technology advances at breakneck speed, what used to be stored in huge warehouses will one day soon end up on relatively small devices which will be affordable to smaller players. The internet pipe will also continue to improve and thus it should be possible to put these servers anywhere in the world; by then Amazon's 2 trillion objects will look puny. What would have been more interesting is to report how much money Amazon make from this, and what their margin is. Hopefully, it is better than their overall profitability which if I recall was below 1% the last time they reported. What I am basically saying is this is probably another low margin business for which they can never hope to get into an early entrant monopoly position.