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I went to a cloud dev summit a year ago and they flat out said on stage that Microsoft and Amazon were under pricing cloud to kill competition. So this is just as expected...

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I think there is a fine line between under pricing competition and having exorbitantly high margins.

"Microsoft and Amazon were under pricing cloud to kill competition"

Who can forget the stories of Microsoft offering their browser for free in order to cut off Netscapes air supply:

http://en.wikipedia.org/wiki/Steven_McGeady

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