Cloud Newbie ProfitBricks tries to Undercut Amazon on Price

Cloud Newbie ProfitBricks tries to Undercut Amazon on Price

Sharp price reductions in ProfitBrick’s cloud services have raised concerns from giant distributors such as Amazon. Industry analyst Michael Facemire sees the move as of high significance. He says that developers’ community is now much more inclined to ‘follow known working patterns’ rather than endorse brands.

ProfitBrick, a smaller Infrastructure-as-a-Service company, has almost cut its prices by fifty per cent in an attempt to set a strong hold in the cloud market. The company believes that the existing giants are not competing on rock-bottom prices. ProfitBricks co-founder Andreas Gauger believes that the cloud ‘price war’ rumours are exaggerated, although he thinks that there is some sort of “shadowboxing among giants.”

Gauger is skeptic of statements made by Amazon’s Vice President, Andy Jassy, who recently told that his cloud services weren’t high margin businesses. To confirm his suspicion, Gauger says that his company was making some 60 to 80  per cent in...
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