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Amazon’s Cloud is building momentum with Corporate Enterprise

Written By: langdon on December 19, 2013 No Comment

Cloud is building momentum with Corporate Enterprise

All the talk about big companies not wanting to put workloads on Amazon Web Services is hot air. The biggest companies already deploy workloads beyond test-and-dev on AWS. The question is: can AWS sustain that momentum as new options come online?

As wildly successful as Amazon Web Services have been, there’s still a lot of noise about how big enterprises don’t want to put their precious workloads on public cloud infrastructure.  The Amazon cloud is not safe or reliable enough for these important workloads, some say.

Here’s a news flash: Big companies may or may not be wary of Amazon’s cloud, but they’re already using it. It’s a pretty safe bet that virtually every Fortune 1000 company is running workloads beyond test and development in Amazon’s cloud and that means trouble for incumbent IT providers like IBM, HP, Dell and others which are scrambling to respond.

According to Cloudyn, whose company helps businesses make best use of AWS, 30 percent of its AWS customers are large enterprises. And while their applications vary, they do include business-critical workloads, and not just development and testing.

Many of the most cited barriers to cloud adoption have been addressed at this point and it’s getting more difficult for territorial IT decision-makers to defend managing infrastructure in-house.  You’d be surprised just how many companies have already made the move.  

Amazon is pressing its first mover advantage to reinforce the notion that it is “the” brand in cloud. “As Kleenex is to tissue, Amazon is to cloud. To capitalize on that sentiment, Logicworks has a managed service that will enable it to manage business customers’ AWS deployments.

Amazon braces for more competition

Amazon is nothing if not proactive. Just as it rolls out services before announcing them, now it’s prepping for more intense competition for enterprise workloads. Rivals say they are better suited for enterprise needs than Amazon. Rackspace says its customer support sets it apart; HP says its enterprise service level agreements (SLAs) will win enterprise customers over.

Sources say that Amazon now offers special deals including discounts to enterprise companies doing as little as $250,000 a year in AWS business. Six months ago, it only offered such deals to companies doing at least $1 million of business annually. Why the change now? One thing that IBM and HP have that Amazon does not is long-term ties to big customers. 

Amazon has a huge head start in public cloud services. The total net sales attributed to the company’s “other” category –which largely consists of AWS is now a $2-billion-a-year+ business,

Amazon’s problem is that it’s had that field much to itself so far. That won’t be true going forward as competition heats up, not just from IBM and HP but Microsoft Azure is also ramping up quickly and Microsoft is well positioned to become a dominant market leader.

One thing’s for sure, as the battle heats up, and competition becomes fierce the whole industry will benefit as more companies and enterprises are lured to the cloud.


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