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Amazon Web Services
Acquired
Scaling Costs, Network Economy, and Cornered Resource
Cloud is probably the single greatest scale economies business of all time. Amazon was kind of the first company to ever try and build data centers at this scale because they needed them to run the largest web application, Amazon.com. When you layer on the switching costs, once people are semi-trugging their data into your data centers, there is very real switching costs. And so thus they can charge the lowest prices at similar or higher profit margins than their competitors.
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