Comment by raw_anon_1111

I am well aware that Netflix doesn’t pay the same price for AWS services that “Joe Bob’s Fish Tackle and WordPress shop”. All big companies give discounts to large companies as part of negotiations which is different from “we are the low cost leader”.

All technology gets cheaper over time. There is a difference between lowering price in response to competitors and finding the profit maximizing price based on supply and demand.

AWS was lowering prices to increase demand before GCP and Azure were a thing.

Jassy said right before he became CEO of Amazon and he was still over AWS that only 5% of IT spend was on any cloud provider. They are capturing non consumption and marketing value of AWS vs that.

While I don’t have any insider experience about Azure, looking on the outside, I would think that Azure’s go to market is also not competing against AWS on price, but trying to get on prem customers on Azure.