Even though there are a number of cloud service providers today, Amazon Web Services still reigns at the top of the cloud computing world. But with Microsoft and Google now making a crack at cloud computing, how will AWS compete with these emerging and soon to be established competitor companies? When cloud computing was new, Amazon Web Services was the provider of choice. But in the last few months, experts from telecom services firm Sigma Systems Canada Inc have been saying that the dominance of AWS in cloud computing is reaching its end. Let’s take a look.
According to Rick Mallon, Sigma’s VP for product management and marketing, some of his company’s developers used AWS while his other developers preferred Microsoft’s Azure. When it came down to choosing one cloud provider for 2013, Microsoft won because the developers said that Azure was cheaper and that Microsoft was starting to build more facilities worldwide. He also added that there is little difference now between AWS and other service providers.
The cloud computing industry has become very competitive since 2013, with Microsoft and Google Inc cutting the cost of their service offerings and boosting their cloud products. Google has reduced the prices of some of their cloud features, including networking options and storage from 23% to 79%. Microsoft also cut down prices last year and have slowly increased their cloud services to include hardware and software packages.
Virtusa senior director Madhavan Krishnan stated that the cloud computing race will be very close in 2015. Some experts also stated that sales of AWS have been declining; growth fell from 57% to 38% during 2013. Amazon Web services were certainly the default leader in cloud computing because they had a head start. It seems this is not the case any longer.
How AWS Stays On Top In The Cloud Battle
Despite all of this, and even with emerging competitors in the market, Amazon Web Services remains the dominant cloud service provider. The service has a 27% share in the worldwide market for cloud services, as stated by Synergy Research Group Inc. Microsoft has 10% and IBM has 7%.
In addition to their wide range of cloud-based services, AWS also has the biggest capacity to handle cloud-based workloads. It is estimated that Amazon’s workload handling capabilities is 5 times greater than all competitors in the market combined. It was also reported that AWS is the market share leader because of its extraordinary innovations as well as its ability to be responsive to the market and exceptionally agile. The report also added that AWS has the richest IaaS portfolio and is continually expanding its services and price reductions. AWS also has a robust partner ecosystem with leading technology providers offering services via Amazon’s cloud.
Evolving With The Times
Amazon Web Services is no longer just a developer’s playground, although it has helped the company to become what it is today. Amazon stated that when they started this particular venture 8 years ago, they assumed that the advantages of on-demand computing would just be useful for startup companies. According to Matt Wood, General Manager of Data Science for AWS, their general approach is to go out and ask customers where they are having issues, take the feedback and continually build upon their services. He also added that the whole approach is straightforward – focus is on exactly what the customers are asking for.
According to Wood, one good example of how AWS adds services and strengthens its appeal is Redshift, which addressed a data warehousing issue that was creating many issues for customers. He also added that by keeping the messaging simple, it would make the service more accessible and successful right out of the gate.
The Cost Of The Service
AWS’ scale has also allowed for a cut to the cost of its services. For the last 8 years, AWS has had a very solid track record of consistently reducing their prices. More customer means more services and more infrastructures to build the data centers. Thanks to the large scale on which AWS operates, the company is able to negotiate their own discounts and operate more efficiently. Of all the cloud service companies in direct competition with AWS, the main competitor is Google. Google has the means to go toe to toe with Amazon; they have the money and the resources to continue to sustain their services.
Don’t Take Leadership For Granted
Amazon web services should not take their leadership for granted. With Microsoft’s strong numbers and Google’s continued growth, AWS must accept that it’s in a three-cloud battle.
Solid sales of cloud products have helped lift Microsoft’s revenue by 18% as of last quarter, despite declining profits. Many experts have given credit to Microsoft for its slow and steady approach to cloud computing which seems to have worked out well. Thanks to Microsoft’s existing developer’s base and loyal OS and Office users, it has gained real traction in cloud computing. AWS is obviously the provider to beat, but Google and Microsoft are making solid efforts. Google has good PaaS and IaaS offerings, as does Microsoft. If we put things into perspective, Google is currently in 3rd place, Microsoft in 2nd and AWS in 1st.
There is no question that these are 3 strong cloud service providers which will make the cloud market more active and interesting.