No - that's why their pricing is so detailed and why their services have few limits you can't request them to increase.
They can afford to maintain a better branch of Elastic Search or Redis or so on, an drive those companies out of business by the virtue of efficient free market competition. At which point they'll make sure their branch is only useful on their servers, perhaps by adding dependencies on all their internal microservices - so technically they released the code but you can only run it if you're Amazon.
> At which point they'll make sure their branch is only useful on their server
Can you think of any examples where they've done that? They certainly could, but I can't think of any times they have actually rug-pulled like that, and the motive to do so seems tenuous too. In order for Amazon to do something like this they would need established market dominance, as well as a belief that some new player will hurt their market share enough to justify alienating the FOSS community.
Sorry, I didn't want to imply that they do. This would be illegal as per antitrust regulations.
What I wanted to say is that AWS using a permissively-licenced project is fine. The project should have thought about the licence beforehand and started with copyleft from the beginning on. Their problem now.
But a more general problem I see is that even if you use a copyleft license for your project, you have the risk to be crushed by anti-competitive behaviours coming from TooBigTech. It's not rare, they do that all the time and the US doesn't enforce anything. And when others (like the EU) try to do it, the US put pressure because they defend their US TooBigTech.
The latter is not a model or licencing issue, it's an antitrust issue. Now Amazon could compete with Redis without doing it illegaly, but they can only because they are so big. And the fact that they are so big is related to the lack of antitrust enforcement (it's documented, TooBigTech have all abused their dominance forever).
Not really. I have done multiple AWS pricing and costing exercises while launching services and there was never a direction from the VP to sell it lower than what it costs to build and operate. Cost to build and operate includes everything from salaries, infrastructure and many other line items. And usually things are projected 3-5 years into the future and P&L analysis must show that eventually the service will make a profit. It does make some assumptions about minimum customer adoption for the profit margins to materialize which eventually becomes part of the product and sales teams goals.
The costing model does allow losses to be incurred in the initial years because building the thing is more expensive at first but then it should settle down and revenue should outpace expenses.
What can happen with these open source products being launched as a service is that that initial cost can be cut down by as much as 50-75% but rarely more than that because you still need to build all the surrounding infrastructure, documentation, UI. It still gives AWS an advantage by relying on an existing body of work they can start with where many problems have been thought through and solved. Also you will likely get a good product roadmap skeleton ready to be prioritized which otherwise can be a huge time sink.
In a nutshell, no. AWS won’t sell a service at a loss (there are exceptions of course) but there is room to incur a loss at the beginning but it is priced to eventually turn a profit. Whether that happens for every service in reality is a different story.
