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November 10, 2006

Comments

baris

Comments are here:

http://www.venturebeat.com/contributors/2006/11/09/amazoncom-and-the-fabless-semiconductor-industry/

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Rosie

These comments have been invaluable to me as is this whole site. I thank you for your comment.

Hameed

Nope! Amazon is dreaming. And so is the VC community.

This is a very simplistic parallel between IC industry and Amazon's plans. Doesnt work like IC's in this industry. A startup (developer) can starting hosting at a $8/month service provider and then scale to AT&T or Equinix or Verizon without any issue today. In that process, buying bandwidth, storage, power, space all kinds of things as they need at a price point they (start ups) like is no big deal.

In case of IC's it was different, fabs needed $x Million investment at the minimum so you had fat, big companies as the only choice for manufacturing.

If you think of Amazon's plans, hundreds of smaller companies can provide the same services at different levels of sophistication to startups. Some are even doing it from their basements.


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