Comment by amzn-throw
4 years ago
Do you really think that all it takes to operate an elasticsearch instance is to white-label an equivalent ec2 instance and execute some shell scripts on it?
If that were true, people wouldn't pay for it...
4 years ago
Do you really think that all it takes to operate an elasticsearch instance is to white-label an equivalent ec2 instance and execute some shell scripts on it?
If that were true, people wouldn't pay for it...
Of course not, don't be ridiculous. My point is that whatever man-power and resources required to run the elasticsearch service can be considered as fixed cost, while the same 47.53% profit margin can continue to "scale" indefinitely, regardless of whether you have 10 customers or 10,000 customers. That's the beauty of it.
As we can see elsewhere in the comments, your biggest competitor appears to be the various kubernetes operators. With kubernetes as the common stack across multiple cloud providers as well as on-prem datacenters, the 10,000 customers can now contribute to the same operator project, to possibly get somewhere close to, or even exceed, what AWS can do with a small team of engineers.
Perhaps anticipating this trend, GKE now has an "autopilot" mode, such that a 30% profit margin is already included in the node pricing. That's one hell of a moneymaker.