Jure Cuhalev

As Amazon announced their CloudFront service, they’ve made a very interesting sentence:

[..]   There are no minimum usage commitments, no monthly fees, and no need to even talk to us [..]

in this new new new (..) economy, it’s important to understand that one of the most expensive aspects of selling to long tail is your man power. People people to answer email, make those phone calls and overall think instead of your users is often one of the most expensive part of the operation that can easily eat most of your profits with smaller custumers.

That’s why companies like Amazon Web Services and others make sure that the whole process is automated, with good knowledge bases and no easy way to reach human being. It’s sadly just too expensive.

Related articles by Zemanta

• Adam Selipsky VP of AWS: introducing Amazon Web Services @ AWS Start-Up Project Amsterdam
• Werner Vogels CTO Amazon about cloud computing @ AWS Start-Up Project Amsterdam
• We’re Never Content – We’ve got something new and cool … (Amazon Web Services Blog)
• Amazon Web Services Not Just for Early Adopters

Related posts:

1. Nick Black – Common Enterprise: Building a Business on Free Data [reboot10 notes]
2. Session notes: Tara Hunt – Happiness as business model
3. Exploiting Dunbar’s number for your business model