Earlier this year two different research reports came out describing the overall cloud computing market and Amazon’s role in it. Synergy Research Group saw Amazon as by far the biggest player (bigger in fact than the next four companies combined) with about 30 percent market share. But Gartner, taking perhaps a more focused view of just the public cloud, claimed Amazon holds 82 percent of the market with cloud capacity that’s 10 times greater than all the other public cloud providers combined. I wonder how these disparate views can be possible describing the same company? And I wonder, further, whether this means Amazon actually has a cloud monopoly?
Yup, it’s a monopoly.
Amazon has monopoly power over the public cloud because it clearly sets the price (ever downward) and has the capacity to enforce that price. Amazon is the OPEC of cloud computing and both studies actually show that because both show Amazon gaining share in a market that is simply exploding.
The way you gain share in an exploding market is by exploding more than all the other guys and we can see that at work by comparing IBM’s statement that it would (notice it is speaking about future events) invest $1 billion in cloud infrastructure in the current fiscal year, versus Amazon’s statement that it had (notice is is speaking of events that had already happened) spent $5 billion on cloud infrastructure in the past fiscal year.
Maybe $1 billion against definitely $5 billion isn’t even a contest. At this rate Amazon’s cloud will continue to grow faster than IBM’s cloud.
Read More : http://betanews.com/2015/11/02/amazons-cloud-monopoly/
Yup, it’s a monopoly.
Amazon has monopoly power over the public cloud because it clearly sets the price (ever downward) and has the capacity to enforce that price. Amazon is the OPEC of cloud computing and both studies actually show that because both show Amazon gaining share in a market that is simply exploding.
The way you gain share in an exploding market is by exploding more than all the other guys and we can see that at work by comparing IBM’s statement that it would (notice it is speaking about future events) invest $1 billion in cloud infrastructure in the current fiscal year, versus Amazon’s statement that it had (notice is is speaking of events that had already happened) spent $5 billion on cloud infrastructure in the past fiscal year.
Maybe $1 billion against definitely $5 billion isn’t even a contest. At this rate Amazon’s cloud will continue to grow faster than IBM’s cloud.
Read More : http://betanews.com/2015/11/02/amazons-cloud-monopoly/
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