Pretty good article on Seeking Alpha b Arne Alsin on the AWS cloud dominance. Alsin points out that slower tech companies like IBM, Oracle, and HPQ almost inevitably lost while Microsfot and Google have done well…so far. Nothing new there I know. But this author makes the case that the cloud will eventually be a zero sum game and AWS will be the eventual winner with Microsoft and Google eventually losing too.
I’m not convinced of that last part, but found the article was well worth reading nevertheless.
Five years after Jeff Bezos and Andy Jassy launched Amazon (NASDAQ:AMZN) Web Services, in March 2011, Businessweek reporter Ashlee Vance penned an article titled “The Cloud: Battle of the Tech Titans.”
This article foretold the eventual obsolescence of the mainframe server business and the impending dominance of Amazon in the nascent cloud industry.
Why am I bringing up this five-year-old article now? Because I believe Vance’s predictions are finally coming true.
The problem for many of the companies trying to compete in the cloud is this: Cloud, in my view, is a zero-sum game. As Amazon continues to land big name clients and invest in its infrastructure, I believe it will simply pull further and further ahead of its competitors in the space, who will - Microsoft and Google included - lose out in the end.
Research firm Canalys now estimates that spending on cloud revenue could grow to $190 billion by 2020. And it’s my belief that Amazon is in the perfect spot to capture much of that market.
Definitely take the time to read the whole thing if you get a chance: http://seekingalpha.com/article/4031799-amazon-killing-compe…
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