There are a lot of costs that go into a service like this that have nothing to do with the cost of the machines in use: the cost of power, the salaries/benefits of team members * the size of the team (which sounds like it's increasing), insurance premiums on the data centers, R&D costs, they have to make enough to cover potential pay-outs due to SLA violations, and probably dozens of others that are far less obvious. You're also assuming that they replace all the machines every time a faster/cheaper version comes out.
I have no way to know to know their profit margin on their cost vs. revenue, but saying the price of the service should be cut in half because computing power has become cheaper is a bit ridiculous. -- You received this message because you are subscribed to the Google Groups "Google App Engine" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/google-appengine?hl=en.
