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How should Amazon Web Services price its services to  Zappos ?

How should Amazon Web Services price its services to  Zappos ?. Original blog posting (December 19 , 2013). Amazon Web Services, Inc. offers Cloud-based hosting service . Provides compute, storage, and database services Used by Amazon’s various divisions including Zappos. Question 1.

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How should Amazon Web Services price its services to  Zappos ?

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  1. How should Amazon Web Services price its services to Zappos? Original blog posting (December 19, 2013)

  2. Amazon Web Services, Inc. offers Cloud-based hosting service • Provides compute, storage, and database services • Used by Amazon’s various divisions including Zappos

  3. Question 1 What possible pricing methods could Amazon use to set the transfer price for AWS’s cloud-based hosting service to Zappos?

  4. Question 2 Why might Zappos’ management argue for a discounted transfer price?

  5. Question 3 Why might the management of AWS argue for a transfer price at the market price?

  6. Question 4 What advantages could Zappos experience from using Amazon’s AWS services?  What advantages could Zappos conceivably experience by using a different cloud-based hosting service?

  7. Question 5 Should Zappos be allowed to use a cloud-based hosting service other than AWS? Why or why not?

  8. Question Recap • What possible pricing methods could Amazon use to set the transfer price for AWS’s cloud-based hosting service to Zappos? • Why might Zappos’ management argue for a discounted transfer price? • Why might the management of AWS argue for a transfer price at the market price? • What advantages could Zappos experience from using Amazon’s AWS services?  What advantages could Zappos conceivably experience by using a different cloud-based hosting service? • Should Zappos be allowed to use a cloud-based hosting service other than AWS? Why or why not?

  9. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/Related video resources can be found at http://www.youtube.com/user/accountingheadlinesQuestions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu

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