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How can Microsoft ever compete with Amazon?

But Microsoft and other more traditional software companies may struggle with an even more fundamental issue as they move to supplement their standard offerings with software-as-a-service and cloud development platforms.

Ozzie hinted at it with his acknowledgment of Amazon’s success to date. Sridhar Vembu, CEO of AdventNet, the company that created the Zoho suite of online productivity applications, highlights it in a smart blog post.

Amazon is a giant in a business with notoriously slim profit margins, which is likely part of the reason it was so quick to recognize and capitalize on the cloud computing opportunity. Its retail business models are designed around obtaining the maximum amount of efficiency from its operations.

That’s not the case with traditional software suppliers. Companies like Microsoft aren’t particularly eager to make huge infrastructure investments to support what could end up being a low-margin business — especially when at least some of its customers will likely be those who migrate from its own higher-margin on-premise products. Writes Vembu:

… it is hard to see how the economics would work for [Microsoft] against Amazon. It is very hard for companies to go down the value chain for growth, so I am skeptical Microsoft would easily accept Amazon-like margins. On the other hand, for Amazon, cloud services have to deliver only a little higher margin than retail to be well worth the investment. That is not a tough hurdle, because retail is one of the toughest businesses out there


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Whale Fall
-----------------

Dress me up in my new threads
clasp my greasy palms
grease my hair
I'm ready for the fall


Watch at all the decadence
watching the avalanche
I'm slipping down
losing my buoyancy


What's become of us
where have we come
this far, this close
close to the doors


I hear them, sublimal chants
I'm on the run
I race through the human sea
I am the king!


I'm the slave
to my own undoings
I'm the jester in my courtyard
We jest as we run


We're strolling on that thin rope
we grope as we rope
we're true heros
we're the survivors


we're the scavengers
we're the friends
we're the lovers
we're the unbred


Soon awaiting the fall
we're lurking on us
we're osedaxing us
we're soon going to be done
we'll soon be arrested




*osedax(bone devourer, newly discovered marine genus) feeds on a fallen(sunken) whale carcass(which is also called a whale fall). Read more here