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Microsoft’s partnership with AT&T serves to help the company close ground on cloud leader AWS. AT&T employees more than 250,000 people globally and its profile is sure to help drive sales of Microsoft solutions. The companies are also collaborating on Artificial Intelligence (AI) and 5G wireless solutions. “AT&T and Microsoft are among the most committed companies to fostering technology that serves people,” explained AT&T Communications’ CEO John Donovan in a press release. “By working together on common efforts around 5G, the cloud, and AI, we will accelerate the speed of innovation and impact for our customers and our communities.”

“AT&T is at the forefront of defining how advances in technology, including 5G and edge computing, will transform every aspect of work and life,” added Microsoft CEO Satya Nadella in the same release. “The world’s leading companies run on our cloud, and we are delighted that AT&T chose Microsoft to accelerate its innovation. Together, we will apply the power of Azure and Microsoft 365 to transform the way AT&T’s workforce collaborates and to shape the future of media and communications for people everywhere.”
And sometimes the platform claws back a second or third bite of the apple. Amazon.com charges merchants for fulfillment, warehousing, transaction based fees, etc. And they've pushed hard into launching hundreds of private label brands which pollute the interface & force brands to buy ads even on their own branded keyword terms.
They've recently jumped the shark by adding a bonus feature where even when a brand paid Amazon to send traffic to their listing, Amazon would insert a spam popover offering a cheaper private label branded product:
Amazon.com tested a pop-up feature on its app that in some instances pitched its private-label goods on rivals’ product pages, an experiment that shows the e-commerce giant’s aggressiveness in hawking lower-priced products including its own house brands. The recent experiment, conducted in Amazon’s mobile app, went a step further than the display ads that commonly appear within search results and product pages. This test pushed pop-up windows that took over much of a product page, forcing customers to either click through to the lower-cost Amazon products or dismiss them before continuing to shop. ... When a customer using Amazon’s mobile app searched for “AAA batteries,” for example, the first link was a sponsored listing from Energizer Holdings Inc. After clicking on the listing, a pop-up window appeared, offering less expensive AmazonBasics AAA batteries."
Buying those Amazon ads was quite literally subsidizing a direct competitor pushing you into irrelevance.
And while Amazon is destroying brand equity, AWS is doing investor relations matchmaking for startups. Anything to keep the current bubble going ahead of the Uber IPO that will likely mark the top in the stock market.
Some thoughts on Silicon Valley's endgame. We have long said the biggest risk to the bull market is an Uber IPO. That is now upon us.— Jawad Mian (@jsmian) March 16, 2019
As the market caps of big tech companies climb they need to be more predatious to grow into the valuations & retain employees with stock options at an ever-increasing strike price.
They've created bubbles in their own backyards where each raise requires another. Teachers either drive hours to work or live in houses subsidized by loans from the tech monopolies that get a piece of the upside (provided they can keep their own bubbles inflated).
"It is an uncommon arrangement — employer as landlord — that is starting to catch on elsewhere as school employees say they cannot afford to live comfortably in regions awash in tech dollars. ... Holly Gonzalez, 34, a kindergarten teacher in East San Jose, and her husband, Daniel, a school district I.T. specialist, were able to buy a three-bedroom apartment for $610,000 this summer with help from their parents and from Landed. When they sell the home, they will owe Landed 25 percent of any gain in its value. The company is financed partly by the Chan Zuckerberg Initiative, Mark Zuckerberg’s charitable arm."
The above sort of dynamics have some claiming peak California:
The cycle further benefits from the Alchian-Allen effect: agglomerating industries have higher productivity, which raises the cost of living and prices out other industries, raising concentration over time. ... Since startups raise the variance within whatever industry they’re started in, the natural constituency for them is someone who doesn’t have capital deployed in the industry. Who has socks I need tickets book If you’re an asset owner, you want low volatility. ... Historically, startups have created a constant supply of volatility for tech companies; the next generation is always cannibalizing the previous one. So chip companies in the 1970s created the PC companies of the 80s, but PC companies sourced cheaper and cheaper chips, commoditizing the product until Intel managed to fight back. Meanwhile, the OS turned PCs into a commodity, then search engines and social media turned the OS into a commodity, and presumably this process will continue indefinitely. ... As long as higher rents raise the cost of starting a pre-revenue company, fewer people will join them, so more people will join established companies, where they’ll earn market salaries and continue to push up rents. And one of the things they’ll do there is optimize ad loads, which places another tax on startups. More dangerously, this is an incremental tax on growth rather than a fixed tax on headcount, so it puts pressure on out-year valuations, not just upfront cash flow.

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