Comments for Platformonomics http://www.platformonomics.com Tue, 02 May 2017 01:10:59 +0000 hourly 1 Comment on Follow the CAPEX: Cloud Table Stakes by Arnold D http://www.platformonomics.com/2017/04/follow-the-capex-cloud-table-stakes/comment-page-1/#comment-319359 Tue, 02 May 2017 01:10:59 +0000 http://www.platformonomics.com/?p=857#comment-319359 I really don’t understand anything on your blog. Sorry Charles. But those pictures are great! And I love your logo.

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Comment on Follow the CAPEX: Cloud Table Stakes by Charles Fitzgerald http://www.platformonomics.com/2017/04/follow-the-capex-cloud-table-stakes/comment-page-1/#comment-319341 Thu, 20 Apr 2017 15:46:14 +0000 http://www.platformonomics.com/?p=857#comment-319341 Not sure why we care about telcos’ feelings. One of the areas Google and Microsoft appear to have spent a lot more on CAPEX than Amazon is in owning their own fiber. At the time time, Amazon who say almost nothing publicly about their infrastructure, have complained about their telco dependency. Seems relevant when handicapping the big cloud players’ infrastructure investments and their relative cost structures.

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Comment on Follow the CAPEX: Cloud Table Stakes by Richard Hintz http://www.platformonomics.com/2017/04/follow-the-capex-cloud-table-stakes/comment-page-1/#comment-319340 Thu, 20 Apr 2017 11:51:32 +0000 http://www.platformonomics.com/?p=857#comment-319340 Reasonable people can differ, but I don’t think complaining about telco fiber prices equates to any conclusions about how much or how little fiber Amazon controls relative to their competitors. I think we just don’t know.

It’s common to complain about telco pricing as a sourcing strategy, as with any good where there’s a high barrier to entering the market.

Your piece is a useful addition to the discussion.

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Comment on Follow the CAPEX: Cloud Table Stakes by Charles Fitzgerald http://www.platformonomics.com/2017/04/follow-the-capex-cloud-table-stakes/comment-page-1/#comment-319336 Wed, 19 Apr 2017 22:32:16 +0000 http://www.platformonomics.com/?p=857#comment-319336 Amazon may have some fiber but not nearly as much as Google and Microsoft, which puts them at a relative cost disadvantage. The fact they have complained about telco pricing publicly reinforces this. I am sure they will be spending more here.

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Comment on Follow the CAPEX: Cloud Table Stakes by Richard Hintz http://www.platformonomics.com/2017/04/follow-the-capex-cloud-table-stakes/comment-page-1/#comment-319334 Wed, 19 Apr 2017 17:44:49 +0000 http://www.platformonomics.com/?p=857#comment-319334 IRUs are priced as the market allows and can be difficult to get where capacity is limited. Also, some holders of fiber assets don’t want to lease capacity to a competitor, so there’s that. IRUs are common, though.

Another option is a muxed wave on a fiber, which can amount to the same thing, that is, dedicated fiber capacity. So there are at least a couple of ways to get private network capacity, even if you don’t own the actual strands.

I’m not sure that Amazon doesn’t own a lot of fiber, especially metro, and we just don’t know it. They aren’t exactly forthcoming, though James Hamilton has mentioned a lot of detail about their interconnections.

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Comment on Follow the CAPEX: Cloud Table Stakes by Charles Fitzgerald http://www.platformonomics.com/2017/04/follow-the-capex-cloud-table-stakes/comment-page-1/#comment-319333 Wed, 19 Apr 2017 15:05:13 +0000 http://www.platformonomics.com/?p=857#comment-319333 I’m focused on pricing – owning pipes let’s you avoid paying telco retail rates which never come down. How are IRUs priced?

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Comment on Follow the CAPEX: Cloud Table Stakes by Richard Hintz http://www.platformonomics.com/2017/04/follow-the-capex-cloud-table-stakes/comment-page-1/#comment-319332 Wed, 19 Apr 2017 08:28:13 +0000 http://www.platformonomics.com/?p=857#comment-319332 Why are you assuming Amazon doesn’t own its network?

Even if it doesn’t own fiber in the ground or ocean, it may have IRUs, which amount to the same thing. I have no specific knowledge one way or the other, but it’s common for larger network users to get dedicated resources using IRUs.

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Comment on Sorry Oracle, Clouds are Built with CAPEX, Not Hyperbole by Charles Fitzgerald http://www.platformonomics.com/2016/09/sorry-oracle-clouds-are-built-with-capex-not-hyperbole/comment-page-1/#comment-317433 Mon, 19 Sep 2016 19:39:13 +0000 http://www.platformonomics.com/?p=827#comment-317433 They are definitely failing to do what they need to do which is sustain/extend/replace their database franchise in the cloud era.

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Comment on Sorry Oracle, Clouds are Built with CAPEX, Not Hyperbole by XY http://www.platformonomics.com/2016/09/sorry-oracle-clouds-are-built-with-capex-not-hyperbole/comment-page-1/#comment-317422 Mon, 19 Sep 2016 09:40:00 +0000 http://www.platformonomics.com/?p=827#comment-317422 APEX should be taken relative, not absolute. If Oracle suddenly invests a 100 billion for empty datacentres, it wouldn’t do any good.

That said, Oracle has long lost its business case. Once, they’re on the database technology front in a time when DBMS made a difference. Now, they’re free, replaceable and on par with each other with services on these databases, in the cloud, offered by the hundreds by competitors.

Extortion of existing clients, the core business of Oracle, will be increasingly harder with the competition being cheaper, safer, technological better and for a change, sympathetic.

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Comment on Sorry Oracle, Clouds are Built with CAPEX, Not Hyperbole by William http://www.platformonomics.com/2016/09/sorry-oracle-clouds-are-built-with-capex-not-hyperbole/comment-page-1/#comment-317402 Sun, 18 Sep 2016 01:04:09 +0000 http://www.platformonomics.com/?p=827#comment-317402 I agree with the author. Everybody inside oracle knows that oracle is a much much more a finance company rather than a tech. company. Thats why they heavily need words.

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