Amazon: AWS Success Not Just About Pricing

Amazon’s (NASDAQ:AMZN) share price rose as much as 20 percent last week on higher quarterly earnings, but as Diginomica reports, Amazon CFO Brian Olsavsky says that the success of the company’s cloud division isn’t just about cost cutting.
As quoted in the publication, Olsavsky said:

Innovation is accelerating, not decelerating. We had over 350 significant new features and services, and we believe that’s what resonates with customers. While pricing certainly is a factor, we don’t believe it’s always the primary factor. In fact, what we hear from our customers is the ability to move faster and more agilely is what they value.

However, that isn’t to say Amazon won’t keep cutting costs for Amazon Web Services:

We have continued to lower prices. We’ve had multiple price cuts this year. We are now up to 49 since launch in 2006, so it is a fundamental part of our business model.
We’re in this for the long haul. We are looking for return on invested capital, free cash flow, and happy customers in the space.

Click here for the full article from Diginomica.