Even more "disruption of disruption"

Last week I wrote about "disruption of disruption"

With its storage in the cloud, amazon has for a while offered storage at prices almost 1/10th of what large outsourcers charge their clients.

Now it disrupts its own storage costs.

"We've often told you that one of our goals is to drive down costs continuously and to pass those savings on to you. We have been able to reduce our costs for data transfer, so we're pleased to announce that we're lowering our pricing for data transfer, effective May 1, 2008."

Voluntarily lowering prices? Another disruption to the traditional outsourcing market where the general attitude is Moore's Law does not apply to their sector.

Comments

[Charlie Wood]

Vinnie-

I'd be interested to know how prices have grown or declined in enterprise software over the last 10-20 years. Do prices come down? For instance, is it cheaper to do a full-blown R/3 install now than it was in the past?

-c

[vinnie mirchandani]

Charlie, I would say it has been a function of how well you negotiated your apps license, data base and SI and then apps maintenance and support outsourcing. All over the place. I see companies who negotiate hard on the license then lose it in the training, testing or other implementation phase. Like going to the farmer's market every few weeks. List prices do not mean much at all.