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The Cloud is Not a Railroad - An Argument Against the Vertical Separation of Cloud Providers

High Scalability

A Cloud Provider Absorbs Huge Fixed and Sunk Costs. Cloud providers incur huge fixed costs for creating and maintaining a network of datacenters spread throughout the word. The fixed and sunk costs incurred by the cloud provider will dwarf any investment from third party service providers.

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The Crisis in Child Care: A Tri-Sector Solution?

UVA Darden

This matter — which particularly affects women and girls — touches issues of health, income, crime, IQ, costs to families and the public, and an individual’s ability to maintain steady employment. Once you add fixed costs to those wages, it gets very expensive to run a quality program with skilled providers. Economist James J.

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Who Rules the Web Now?

Harvard Business Review

As each of these companies expands its fixed-cost infrastructure, profits grow geometrically because the additional variable cost of adding each new user is near zero. Adding a profile on Facebook has little to no impact on Facebook's operating costs. Greater scale bestows greater competitive advantage.