AWS Re:Invent: AWS hits out at private cloud pushing tech dinosaurs

published 28 November 2012

Jassy claimed the reason why so many "old guard" technology firms are pushing private cloud is to protect their high margin business models.

"The economics of what we're doing are extremely disruptive for old guard tech companies, [which have lived on 60-70 per cent gross margins for many, many years," he said.

"Now, high margin businesses have been around forever and they are obviously valid and successful business models, but...[ours] is a high volume, low margin model.

"Every business we run [fits that model] and most of the old guard don't like those types of business, which is why they're pushing private cloud because it doesn't disrupt their businesses," he added.

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Caroline Donnelly is the news and analysis editor of IT Pro and its sister site Cloud Pro, and covers general news, as well as the storage, security, public sector, cloud and Microsoft beats. Caroline has been a member of the IT Pro/Cloud Pro team since March 2012, and has previously worked as a reporter at several B2B publications, including UK channel magazine CRN, and as features writer for local weekly newspaper, The Slough and Windsor Observer. She studied Medical Biochemistry at the University of Leicester and completed a Postgraduate Diploma in Magazine Journalism at PMA Training in 2006.