Amazon, which has used razor-thin margins to undercut rivals, is susceptible to the same competitive pressure because of its fat AWS profits.
“Your margin is my opportunity.”
It’s a quip often attributed to Amazon CEO Jeff Bezos to explain his zeal for high-volume sales at teeny-to-nonexistent profits. It’s ironic, then, that in Amazon’s cloud business it is Bezos’ margin that is providing an opening to rivals like Google.
Amazon’s Lofty Profits Open Cloud to Rivals [Shira Ovide / Bloomberg]