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Bezos is executing better than the original SAAS vendors that FOSS community editions. You want to compete with buff Jeff then make sure you support Azure/GCP too and can price below Bezos' margin above raw EC2 - usually means you have to get creative with spot instances and avoiding cross data center network.

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Amazon can, and will price you out of the market regardless of what you do. And if your idea is novel enough, they will just make their own version of it (or fork it, like in the original post!).

Is that wrong? The computer revolution was ignited by other companies essentially copying the designs of microprocessors and reselling them as their own.

You say this as if it's not a sign of a monopoly.

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