I am not sure why the service business is any better.
Sure you can cash the checks you get from your customers and write out a check for AWS. Or you can run a data center the old way or some new way. So can anybody else.
There is just no moat. Running the service you can pocket the money you make learning how to run it more efficiently. You share some attributes with Salesforce.com but you don't have the patent portfolio and other proprietary IP that makes Salesforce a great product for what it is.
Sure you can cash the checks you get from your customers and write out a check for AWS. Or you can run a data center the old way or some new way. So can anybody else.
There is just no moat. Running the service you can pocket the money you make learning how to run it more efficiently. You share some attributes with Salesforce.com but you don't have the patent portfolio and other proprietary IP that makes Salesforce a great product for what it is.