The cloud computing market continues to show unexpected results, in addition, the size of the “cloud” is also expanding rapidly, with the participation of many different players. So what are these companies selling? And why is a new company like Amazon, just a little-known name 10 years ago, leaving the big names like Google or Microsoft behind?
Firstly, why would anyone want to participate in the “cloud”?
In support of their websites and services, Amazon, Microsoft and Google have self-built computing infrastructures with tons of substructures and equipment. The data centers of these companies are extremely large, and more efficient compared to the server rooms or data centers of the smaller companies. Not only meet their needs, they also provide their center parts for software developers and other firms to hire. Thus, companies and software developers anywhere in the world simply swipe their card payment then use computerized machines with unlimited power. This means their software can run on a larger scale with lower cost, better efficiency and without having to worry about running a data center. To meet the growing demand from the world of software and applications, the cloud computing market is attracting more and more big players.
The basic principle of the cloud service suppliers is providing those “clouds” for independent software developers as well as large companies. Anyone can participate in the game but when expanding business, they will need the bigger “cloud”. Due to almost having no difference in the basic services, the competition primarily depends on the economies of scale of the data centers.
Amazon – simply go ahead
When Amazon Web Services was first introduced in 2006, the firm had only a service pack of basic infrastructure: EC2 (Elastic Compute Cloud) for virtual servers. Not long after that, the company added Amazon S3 (Simple Storage Service) for storing files.
Initially, AWS was primarily used by software developers as a cost-saving solution to test applications and operate simple websites. But then, more and more customers, including Netflix, Airbnb and recently Slack, from small applications running on this platform has become core to the explosive growth of these businesses.
Mr. Dave Bartoletti, a researcher said: “The emergence of Amazon started thanks to attractive new applications by developers”.
That was the beginning for the “Efficient round rotation” of Amazon. With revenues from the initial customers, Amazon could reinvest by adding new features for enterprises and services to have better experience, run larger applications.
Today, large companies such as Comcast, Capital One and even CIA also become AWS’s customers, using at least one of their infrastructures. With the advantage of early starting, “Efficient round rotation” has lasted more than any company and with the right orientation, Amazon has a series of advantages related to features and scale than rivals. AWS’s services have become the standard for cloud computing industry, similar to the way IBM established for the data center. Mr. Ed Anderson, Gartner’s president of cloud service research, said: “Nearly all of them agree that Amazon is the safe choice.”
Currently, AWS brings $ 7 billion, by 2020, this number is expected to reach up to $ 50 billion. Gartner predicts that only AWS is capable of providing computing on a par with the next whole 14 opponents.