Quote:
Originally Posted by fjtorres
Ridiculously so.
https://www.investopedia.com/ask/ans...ail-sector.asp
Supermarkets are leaner than average, in the 1-2% range.
AWS has been reported as 25% profit margin but it is going higher as they boost their database, graphics and AI services. So 10x higher.
Tradpub is also low margin, typically in the 5-7%, even with maybe 25% unit sales coming from digital and audio.
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The big issue with cloud services is that they over promise on cost savings for large companies. As I said before, the company that I use to work for was spending over a million dollars a month on AWS. It makes sense in certain business models, such as internet services and web sites, but not nearly as much for other businesses. In a way, it's a lot like outsourcing. Execs love the idea, but the actual results tend to be less than desired.