AWS, once a nice little sideline to Amazon's eCommerce business, has grown over the years into a giant running at $ 27 billion and still growing at around 45 percent a year. This is a very successful company in every way, but when I joined AWS executives last week at the AWS re: Invent conference in Las Vegas, I did not hear a group that was happy to sit and let the growth speak for itself. Instead, I've heard one who wants to master every area of enterprise computing.
Whether it was about hardware like the new Inferentia chip and the new outposts, the new on-prem servers or the blockchain and a base station service for satellites, if AWS saw a server the opportunity that they did not take a centimeter to anyone levies.
Last year, AWS announced an amazing 1
The inflation function is unlikely to last forever, but for now, at least, there is no sign of slowing as the announcements returned at breakneck speed. While they tell you that every decision they make is customer satisfaction, it is clear that some of these announcements are also aimed at responding to competitive pressures.
Competitors Harden Harder
In the past, AWS kept competitors' critique to a minimum that might make Oracle twitch a bit, but this year it seemed like it was a huge problem. In his keynotes AWS boss Andy Jassy and Amazon CTO Werner Vogels constantly lashed out against Oracle, a competitor in the database market, but just now as a cloud company is hardly a major threat.
You've Entered the Oracle Market with a New Enterprise The Outposts prem system allows AWS customers to work on a single AWS control panel or VMware on demand and in the cloud. That's the sort of cloud vision that Larry Ellison may have spawned, but Jassy did not necessarily see it as a consequence of Oracle or others. "I do not see Outposts as a shot over the bow of another. If you look at what we do, that's very important to our customers, "he said at a press conference last week.
AWS has not reserved its criticism for just Oracle. It also targeted Microsoft to use Jabs on Microsoft SQL Server and to announce Amazon FSx for Windows File Server, a tool designed specifically to move Microsoft files to the AWS cloud.
Google did not shy away from launching Inferentia and Google Elastic Inference, which warned Google that AWS would not integrate the AI market into Google's TPU infrastructure. All these tools, and more, were not about answering customer demand, but about eliminating competition in all areas of enterprise computing.
The cloud market continues to grow at a dramatic pace As market leader, AWS has been able to leverage its market dominance to this point. Jassy, referring to Google's Diane Greene and Oracle Ellips Larry Ellison, says that the industry as a whole is still very early in terms of cloud adoption, meaning that there is still a lot of market share left.
"I believe we are in the early stages of enterprise and public sector adoption in the US. Outside the US, I would say we are 12-36 months behind. So there are many well-established companies that are just beginning to plan their approach to the cloud, "said Jassy.
Patrick Moorhead, founder and senior analyst at Moor Insights & Strategy, states that AWS has leveraged its market position Expand into different areas. "AWS currently has the ability to do many things that others can not do, especially lesser-known companies like Google Cloud Platform and Oracle Cloud, and try to bring thousands of new products and features to them This will be a long-term deterrent to other players, and I believe that will lead to a clean-up, "he told TechCrunch.
As for the rapid pace of innovation, Moorhead believes it can not go on forever. "For me, the question is when to reach a point where 95% of the needs are met and the rate of innovation is not required. Every market, literally every market, reaches a point where it does. So it's not a question of whether, but when, "he said.
In certain areas, such as the announcement of the AWS ground station, AWS showed that AWS is willing to expand beyond the conventional market, confined to enterprise computing and space to help companies process satellite data. This ability to think beyond the traditional use of cloud computing resources shows a level of creativity that suggests that there may be other unused markets for AWS that we have not yet envisioned.
As AWS moves into other areas of the enterprise computing stack, whether on-premise or in the cloud, they demonstrate their desire to dominate every aspect of the enterprise computing world. Last week, they showed that there is no area in which they are willing to surrender to anyone.