Amazon has figured out another way to avoid making any profits: this time by giving away loads of its Amazon Web Services resources to startups, opening up another cash-hemorrhaging front in its ongoing cloud war with Microsoft. The "AWS Activate" program was announced by Amazon on Thursday and sees Bezos & Co try to woo …
"Where it gets interesting – and pricey for Amazon – is the "Portfolio Package" tier, which will give startups vetted by accelerators and funds between $1,000 and $15,000 in AWS Promotional Credits"
I'm not sure if "pricey" is the word. If they already have you on the hook, then I'm not sure if they are loosing anything at all, they're probably just making less of a profit. Remember, this was a company that for years was willing to sacrifice profits to just kill off competitors.
"Second-tier cloud provider Rackspace has its own giveaway program, but the $50 a month credit doesn't amount to much."
Maybe it doesn't amount to much, but choosing them and helping the competition stick around should amount to more than $50 at end game. No, I don't work for Rackspace, I just don't like Amazon.
It's a bizarre article. The premise of the article seems to be that the author knows how to run Amazon better than Amazon, that the decisions made are incorrect. Like all such article, the author only criticizes offering no alternative except the implied "don't do it" and based on the limited information to which he has access. Amazon makes money. An interpretation is that Bezos and co are investing in the future of their platform. What would the author have them do? If the author would prefer the profits be returned to investors the correct place for that argument is the AGM - assuming he is an investor.
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