that's almost all wrong. it's mostly commodity hardware, and their margins are thin only because they're a gigantic company. smaller companies can and do offer much better pricing, they just don't have the marketing budget to convince you of it.
It's commodity in the sense that Amazon buys it from commodity vendors, but they use custom designs built to address the specific parameters of their data centers. Very few other companies can afford to employ an army of engineers to tweak every last component for optimal price-performance, nor for that matter do they have the benefit of accounting for a noticeable share of a supplier's revenue when entering the negotiations room.
> Smaller companies can and do offer much better pricing, they just don't have the marketing budget to convince you of it.
I am aware of at least one player (DigitalOcean) offering lower pricing than AWS, but that's only in a fairly limited niche. So while they may have the "economies" part checked they don't have the scale and scope to compete with Amazon on a particularly substantial level. I'd also be curious how they match up to Amazon in terms of operational efficiency since they lack many of the the advantages I listed here and in my previous post, which give AWS an edge in the race to zero as time passes.
