> ## Content Index
> Fetch the complete content index at: https://www.philsimon.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Why Amazon Cut Prices on AWS
- URL: https://www.philsimon.com/why-amazon-cut-prices-on-aws/
- Published: 2012-12-17T16:28:53.000Z
- Updated: 2025-05-11T20:30:41.000Z
- Description: Why drop prices when you're the industry leader?
- Author: Phil Simon
- Tags: Platforms, Strategy, Amazon, Frenemies, The Age of the Platform

[![platform](https://storage.ghost.io/c/8f/b5/8fb5e321-49a6-4cf5-8a28-c6f6d5417e54/content/images/2025/05/platform-58.jpg)](https://tinyurl.com/7philmnr?ref=philsimon.com)

As I write in *The Age of the Platform*, Amazon, Apple, Facebook, and Google have many things in common, no the least of which is the tendency to disrupt themselves before others do. Case in point: [Amazon recently lowering its prices on AWS](https://www.computerworld.com/s/article/9224916/Amazon%5FWeb%5FServices%5Fenacts%5F39%5Fsignificant%5F39%5Fprice%5Fcut?ref=philsimon.com).

If profits are lower in the hosting world, why would others enter?

For its part, Google doesn't want to become Microsoft. In a world of "social search", why do I need Google? In a nutshell, that explains Google Plus.

Disrupt yourself before someone else does.

It's the mantra in the Age of the Platform.