Amazon and Google's Next Battleground

Amazon and Google up their competition in the cloud

Mar 31, 2014 at 6:25PM

In the video below Fool portfolio manager Matt Argersinger and managing editor Eric Bleeker discuss tech events across the past week. 

In this segment, the two discuss Google (NASDAQ:GOOGL) getting more aggressive in the cloud computing space. Amazon (NASDAQ:AMZN) has been able to take a commanding lead providing cloud services thanks to aggressive cost cutting in its Amazon Web Services business in recent years. If there is a well-known startup founded across the past half decade, their IT infrastructure is likely deeply reliant on Amazon's cloud services. 

Google knows that the future of data centers is in the cloud, and isn't ready to cede the space. It's dropping prices on its cloud computing platform, Google Compute, by dramatic amounts. Depending on the service, prices will drop anywhere from 30% for basic hosting services to 85% for data analysis services. 

As Eric and Matt discuss in the video, all signs point to cloud computing prices decreasing at a rate close to Moore's Law. That'll create profitability challenges in the industry, especially for smaller players. Matt specifically cites Rackspace (NYSE:RAX) as a company that's going to be challenged to defend its position as competition increases.

However, much like Intel (NASDAQ:INTC) has been able to generate huge profits for decades competing in the processor space where prices are constantly in free-fall, a company like Amazon can still profit by leveraging services such as it's AWS Marketplace, which is a bit like an app store for the cloud. 

To see Matt and Eric's thoughts on the subject, watch the video below. 

The world's richest man is terrified of this technology
There are few things that Bill Gates fears. Cloud computing is one of them. It's a radical shift in technology that has early investors getting filthy rich, and we want you to join them. That's why we are highlighting three companies that could make investors like you rich. You've likely only heard of one of them, so be sure to click here to watch this shocking video presentation!

Eric Bleeker, CFA has no position in any stocks mentioned. Matthew Argersinger owns shares of The Motley Fool recommends, Google, Intel, and Rackspace Hosting. The Motley Fool owns shares of, Google, and Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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