Read/Write Is Right
HaaS Has Lock-in
Emre Sokullu wrote a nice piece comparing what Amazon is doing with EC2 and S3 to what Google did with AdSense. He cites the inevitable competition from MSFT and GOOG but he also indirectly points out an interesting fact - Hardware as a service has lock-in. The more Amazon web services a company that is on EC2/S3 uses the more difficult it will be to switch off of Amazon's grid onto a competitor's grid. It's hard to say how much of a lead Amazon has on the competition but as Emre correctly points out this is one of AMZN's initiatives to increase profit margins. The Join Advantage program is an other big deal as it relates to expanding margins - don't house inventory have your partners do it.
Last week's pull back was a good time to start a position. Any additional weakness and I'll be pushing chips to the center of the table.
