Wednesday, February 13, 2008

Could Amazon Become The Next Software Giant?

Who would have thought 10 years ago when online retailers Webvan, Etoys and Amazon were founded that one of these companies could eventually rival Microsoft, Oracle and Sun? During this 10 year period enterprise software licenses have been reduced by 1/10 from around $250,000 to $25,000 while bandwidth capacity has increased 100X from dial up speeds of 56k to greater than 5GB. Amazon has quietly become the world leader at selling high volume products at thin margins with zero customer service. Why not take that same level of quality service learned from selling millions of books at thin margins and start selling hosting application services at similar margins? The financial industry has given a sophisticated name to this new industry and we call it "Cloud Computing". Stay tuned!

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