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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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Who Rules the Web Now?

Harvard Business Review

A virtuous cycle is baked into their strategy: use these resources to achieve scale in ways that help achieve even more scale. Greater scale bestows greater competitive advantage. As they pursue their quest for greater scale, they are poised to bring the scale dynamics of digital businesses to offline activities.