At a fast-fashion retailer such as H&M, a simple cut-and-sew top can cost as little as $15. At Gap, something similar might run about $45. At Elizabeth Suzann, a small fashion label based in Nashville, Tennessee, one of the brand’s minimal kimono-sleeved t-shirts, made of cotton twill, is $140.
This seems like the kind of analysis that’ll be handy in the up-coming trade wars.
As represented with the star in the map above, according to CPI data, at labor efficiency of 1,000 VMs per engineer and 66% utilization, these enterprises are poised to beat public cloud on price regardless of whether they use a commercial orchestration software package, an OpenStack distribution or the OpenStack source.
And, on IaaS pricing:
But price still does matter: In a 451 Research custom study commissioned by Microsoft earlier this year, the biggest reason to change primary provider was price, cited by 34% of respondents. Consumers don’t necessarily want the cheapest cloud service, but they don’t want to feel ripped off. If there is a cheaper option elsewhere, it appears end users will take it into consideration.
Announcements on price cuts gather attention, and are a great publicity and discussion tool for service providers. We think cloud prices will continue to come down through 2017, and may spread beyond virtual machines into object storage, and perhaps even databases – virtual machines came down 7% globally in 2015, but the cost of our small application only came down 2.4%. The fact that margins are still healthy suggests providers aren’t sacrificing huge amounts of gross margin to give such cuts. If they are, it might be a few nickels and dimes here and there, but it’s more likely that they are reducing costs through better procurement and management. If we are in a cloud price war, we’ve yet to see it really get off the ground.
And, see more commentary on the topic of IaaS pricing.
Source: Cloud gross margins: The price war has yet to really kick off
Google is able to automatically reward end users a discount for loyalty through a sustained-use pricing scheme – the company claims its method for high utilization means reservations do not hugely benefit them, and so it would rather reward users for loyalty rather than for paying up front and forecasting capacity. Google also offers a per-minute billing model (as opposed to per-hour offers from many providers), and this advantage can also be attributed in part to containers. However, as we show, the benefit of per-minute billing only becomes important when workloads are very bursty.
Source: Google economics: Containers are the key
Austin entrepreneur Campbell McNeill said WeWork’s “high energy environment, cool furniture” and location at Sixth and Congress in the heart of downtown allows his startup, Cocolevio, “to attract the young talent we need for our cloud business.”
“It would be considerably more expensive to set up a similar situation on our own as a new tech startup,” said McNeill, Cocolevio’s co-founder and chief technology officer. “We appreciate we may be paying a lot per square foot, but it is completely worth it when you consider the intangible WeWork benefits like networking with other great startups, making great friends, periodic presentations by industry leaders and WeWork Labs.”
Some more highlights from the piece:
- “three out of four tenants looking for downtown space are likely to be tech-related, Kennedy said. ‘Ten years ago, it would have been less than half that.'”
- “Rents for the highest quality office space in downtown Austin average $49.07 a square foot per year, according to Cushman & Wakefield. That’s 40 percent higher than top-tier space in the suburbs, where rates average $35.10 a square foot.”
- “tenants can expect to pay anywhere from $150 to $200 per month per space for unreserved parking. Reserved spots are as high as $300 per month.”
- “The number of downtown tech workers — between 14,000 and 15,000, according to estimates from the Greater Austin Chamber of Commerce — is still tiny compared with the region’s overall technology workforce, which the chamber estimates at abou 130,000.”
Source: Austin’s tech scene heats up downtown
Under the new plan, the Bellevue, Wash.-based wireless company will charge $70/month for the first line, $50/month for the second, and $20/month for additional lines up to eight, if the customer has auto-pay enabled. That averages to $40/month for a family of four, the company notes.
I’ll gave to check into that/
Source: T-Mobile shifting entirely to unlimited data in new bid to shake up industry
A good overview of what marketing does and should be doing. It especially applies to commodity markets and for products that have little “real” differentiation except in the mind of the buyer (cars, beverages, raw materials, etc.). Fashion (low and high) would be an interesting case.
When Marketing Is Strategy
All about Amazon Prime. The company doesn’t report many details, but there’s some estimates on costs and membership numbers. As ever, file under crazy pricing schemes that seem to work.
Inside Amazon Prime
Bar-bell markets in action.