Amazon’s core competency? Pricing.
I think it’s quite brilliant that Amazon has introduced spot pricing for servers. Great way to exploit unutilized CPUs and bring prices down. Nicholas Carr explains it in utility terms: At the end of the nineteenth century, Samuel Insull, president of the then-tiny Chicago Edison, started the electric utility revolution when he had the counterintuitive realization that to make more money his company had to cut its prices drastically, at least for those customers whose patterns of electricity use would help the utility maximize its capacity utilization.Amazon Web Services is emerging as the Chicago Edison of utility computing. ..