Amazon today, say AWS has 30% EBIT margins, operating margins. Do you think, in that world, can you still charge a premium or earn a 30% margin if it is a commodity, potentially?

I do not know exactly the breakdown of what the highest margin is for them, for example, but I know the more that customers that adopt Graviton, that is something that helps them with that. Obviously, you see Amazon passing a lot of those savings forward to customers, because Graviton is so much cheaper than the equivalent. But I am not really sure what drives the majority of those margins. If they keep getting better economies of scale and can drive down the cost of their instances, they can decide to take that out of margin and drive more usage. You always have to think about when you are doing pricing, is this something that is margin additive to EC2 or is it something that just drives EC2 usage. What do we actually care about here. Some of the services are built to be value add on top of EC2 and you’re paying for the value.

It is like a 10 or 20 year adoption play, just to drive more workload to EC2 in the cloud and drive economies of scale.

That is definitely one of the main focuses. EC2 is obviously one of the largest businesses inside of the company. Everyone is consuming some degree of EC2 and, as long as that keeps growing, the company has great prospects. But you do see services like S3 and DynamoDB, in particular, becoming the standard for developers. If you are looking at a NoSQL database or if you are looking at an object store, you do see continued growth in a lot of these value-added services on top of it. I do not think there is a huge risk of commodification, in general, just because there are so many value-add services on top that seem to be really the incumbent in a certain space. At least from a developer’s perspective, this is what I would use.