MS's chief economist believes that basic cloud services will be commodity-priced, so the strategy is to add value, and both tools and services will be key for that.
There's no strict definition of what "commodity" pricing is. The market is competitive and the products are roughly comparable to each other, so it's reasonable to call them "commodity" products.
Depends on the specific service. Some are priced a % above cost (S3), others are priced a % below competition (data transfer), others are priced based on value (ML, text-to-speech, etc.).
