Amazon under threat

Amazon under threat

Amazon may have done well out of making its services attractive to developers but it could soon face bigger challenges as other Infrastructure-as-a-Service (IaaS) players become more influential, a Gartner analyst has claimed.

Lydia Leong, research vice president of cloud computing at Gartner, said,  Amazon Web Services (AWS) succeeded by providing developers with the right mix of services, while the competition have only recently acknowledged the “legitimacy of the power that developers now hold.”

She said that at present “AWS’s sheer market share speaks for itself”, but a “critical shift” is happening in the market.

“Three very dangerous competitors are just now entering the market — Microsoft, Google, and VMware. I think the real war for market share is just beginning,” she said.

She said that Microsoft has “deep customer relationships, deep technology entrenchment, and a useful story about how all of those pieces are going to fit together, along with a huge army of engineers, and a ton of money and the willingness to spend wherever it gains them a competitive advantage".

While Google’s market share increase would mostly come at the expense of AWS’s base of HPC customers and young start-ups, she said the search giant would “worm its way into the enterprise via interactive agencies that use its cloud platform.”

Meanwhile, VMware has a strong relationship with IT operators, and has technology it can build on, and a hybrid cloud story to tell, but she questioned whether its enterprise-class technology can scale to global-class clouds.

“It might expand the market, but it’s likely that much of its share gain will come at the expense of VMware-based 'enterprise-class' service providers,” she explained.
It would take these providers some time to build share while other players would make their mark, she said.

“They know that this is a software business. They know that innovative capabilities are vitally necessary. And they know that this has turned into a market fixated on developer productivity and business benefits. At least for now, that view is dominating the actual spending in this market,” said Leong.

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