Questions have been raised about the growing influence of Amazon in the cloud computing market.
Some are concerned that Amazon will lock its customers into its own technology, while others are worried about smaller companies being swallowed up when they become lucrative. Amazon Web Services (AWS), which is now 10 years old, has overtaken technology giants such as Microsoft and Google. Research has shown that the company is now the market leader and runs up to ten times more capacity in cloud computing than the next 14 biggest companies put together.
AWS has proved itself to be a real money-spinner for the company, with sales climbing 81% in the second quarter of the year. Operating income increased five-fold and this growth is set to continue. It is not just startups that are opting for the AWS technology, with companies moving over because the service charges are based upon use. Amazon has already publicised that large companies such as BMW are turning to its cloud computing services and that it expects this level of adoption to continue.
The technology industry has often led to the creation of a ‘winner takes all’ market. Google is leading the way in search engines, while Microsoft is dominant in computer operating systems. The cloud market is still in its infancy and Amazon is not yet at the stage Microsoft has reached in its main field; however, this early dominance could lead to similar success.
Amazon customers are happy with the cost savings they can make and startup technology partners are happy to jump on board.