The Innovator\u2019s Dilemma<\/a>. The dominant players don\u2019t have any reason to worry about someone attacking the bottom of the market, and that\u2019s precisely what AWS was doing in the early days.<\/p>\nSpeaking of his competitors, Jassy said they fought as long and hard as they could against the cloud, making every kind of argument a disrupted company tends to make to convince themselves\u00a0there was no existential threat to their market\u00a0dominance.<\/p>\n
\u201cFirst, they said no one will use it, then maybe only startups will use it \u2014 but they won\u2019t use it for anything real. Then it was enterprises will never use it, then enterprises will never use it for anything mission critical. Companies and developers voted with their workloads and now [competitors] are in this spot of trying to spin something up and you know, it\u2019s six or seven years late,\u201d Jassy said.<\/p>\n
AWS CEO Andy Jassy<\/p>\n
One the reasons these companies like Oracle, IBM and to some extent even Microsoft might have stayed away for so long was the cloud was undermining their core value propositions.<\/p>\n
\u201cI think there is a second category of companies that just took an ungodly long time to kind of get there. These are companies like Oracle and IBM and some of those folks, I think for them, the model that we were pursuing was so disruptive to their core businesses.\u201d He went onto say those differences included radically different margins, pricing structures and delivery models, and it raised a fundamental questions for these companies.<\/p>\n
\u201cI think you have that dilemma at a lot of large companies that do you really want to try to accelerate the cannibalization of an existing business, and so I think they fought as long and hard as they could,\u201d he said.<\/p>\n
Jassy admitted that they were surprised it took so long for other players to join in, especially Microsoft, which he didn\u2019t actually name, but referred to as the \u201cbig company across the lake.\u201dI don\u2019t think in our wildest dreams we thought we would have a six to seven year head start, especially since we are across the lake from another big company in that space, and we all know so many people at each other\u2019s companies.\u201d<\/p>\n
Now that they\u2019re all here though, Jassy\u2019s not under any illusions that AWS is alone anymore. He recognizes there will be stiff competition for a market that\u2019s worth trillions of dollars. \u201cThere won\u2019t be just one successful player. There won\u2019t be 30 because scale really matters here in regards to cost structure, as well as the breadth of services, but there are going to be multiple successful players, and who those are I think is still to be written. But I would expect several of the older guard players to have businesses here as they have large installed enterprise customer bases and a large sales force and things of that sort,\u201d he said.<\/p>\n
Jassy did say those other companies had some work to do to catch up with the amount of pure functionality that AWS offers its customers \u2014 and which they are adding to on a regular basis.<\/p>\n
All of this has led to the dominance of AWS in the market, and at this point the math just makes it hard for the players behind them to catch up. The market will continue to grow, and the major cloud players will continue to display flashy growth numbers, but AWS built a big lead by being first and doesn\u2019t show any signs of ceding that lead any time soon.<\/p>\n
<\/p>\n
Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/6yOAEEf8LHs\/<\/p>","protected":false},"excerpt":{"rendered":"
When you look at the size of the cloud market, it\u2019s astonishing that AWS is the undisputed leader, and probably will be for the foreseeable future. Considering the competition is <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19],"tags":[25],"class_list":["post-3485","post","type-post","status-publish","format-standard","hentry","category-enterprise-software","tag-enterprise"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t
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