Amazon Web Services (AWS) is the leader in the cloud market. According to Canalys, AWS dominates the market with 33.8 percent global market share while its closest competitors--Microsoft, Google, and IBM--together account for 30.8 percent of the total market. Oracle Cloud and Alibaba Cloud are other smaller competitors.
ZDNet reports that AWS' 2016 operating income was $3.11Billion on revenues of $12.22Billion, and its annual operating profit was greater than 25%. Synergy Research Group stated that AWS’s 2016 operating income was $3.11 billion on revenue of $12.22 billion. AWS's annual operating profit was more than 25%.
Start At The Head
Amazon began as Merchant.com, an e-commerce company that helped third-party merchants build online shopping websites. Amazon was unable to create an organized environment that could separate different services. The challenge for Amazon was to make a platform that could be used by third parties. In 2006, Amazon Web Services (AWS), emerged to shape the public cloud market. You can learn more about the various aspects in relation to the cloud from the AWS Course.
AWS was used by developers to build and test cool apps. AWS was born out of the "virtuous circle" philosophy. The virtuous circle begins with gaining customers and increasing the number of clients. It then continues with adding servers and more features. Customers enjoy lower prices when AWS offers more features and servers. AWS also gains more customers.
While companies such as Google and Microsoft tried cloud technology, they regarded it as a fad and did not use their resources for project development. Even though Microsoft launched its platform Azure in 2010, it is because of AWS' quick initiative that it's a prominent leader that still rules the cloud market.
Price Drops
AWS is still the market leader in cloud services due to its steady price drop. MarketWatch reports that AWS has reduced prices by more than 50 percent since 2006, and SunTrust Robinson Humphrey analyst Kunal Mughrey said that he wouldn't be surprised to see further price cuts in the future, given recent cost reductions for Microsoft Azure.
AWS has maintained its lead in the cloud market since its launch in 2006. This is due to its aggressive investments to expand its network. AWS's network expansion allows them to achieve greater economies of scale, which allows them to offer lower prices and full-bodied enterprise-scale capabilities. Remember the virtuous circle? AWS gains more clients which allow for increased network expansion funds and price reductions. This results in a more competitive service.
Although rivals such as Microsoft, Google, and IBM had higher Q1 growth rates than AWS, according to the Synergy Research Group, it is important to remember that it's easier to grow from a small number of customers than to increase from a big number of clients. TechCrunch reports that AWS grew at 47 percent despite not having the same growth rates as its competitors, earning $3.53 billion with an astounding $14.2 billion rate.
Innovations And New Infrastructure
Do you remember how AWS was founded in 2006? It was originally created as an infrastructure platform that would allow developers to create and test new apps. After that, the success of the virtuous circle customer base was established. AWS boasts more than 1,000,000 users, including large companies like Netflix and Airbnb. Because of the massive customer base, AWS has better visions than almost any vendor in how customers use cloud services because of the massive customer base. AWS is constantly innovating and creating new infrastructures to serve its customers. AWS also supports AWS all over the globe.
AWS has evolved from a platform for developer’s apps, tools, and analytics to a platform that can store databases, tools, data, and analytics since 2006. MarketWatch reports that Amazon has announced plans to open an infrastructure area in Sweden in 2018. This will join the 16 existing regional operations around the globe. Two more are slated for later in the year. AWS's ability to innovate and change is not limited to storage and computing. AWS is the market leader in cloud services and has developed a complete platform of services.
AWS is the leader, but its competitors, such as Microsoft, Google, and others, are growing rapidly and making a mark in the market. Seeking Alpha reports that AWS appears to be trailing its rivals in AI. Artificial intelligence is one of the fastest-growing areas of cloud computing. Due to the huge amounts of data required for AI, it is possible to reap the immense rewards of the future.
Solutions That Are Fast And Easily Scalable
AWS offers customers fast and easily scalable solutions. According to thenextweb.com AWS boasts the following strengths:
- Diverse customer base
- A wide range of strategic tools for adoption, such as native cloud apps and e-business Hosting
- A large tech partner network includes software vendors who integrate their solutions with AWS
- We have a large network of partners who offer app development expertise managed services, as well as professional services like data center migration.
- A rich array of IaaS/PaaS capabilities
- Rapid service expansion and high-level solutions. AWS has the ability to scale its capacity, which allows it to solve business problems. AWS auto-scaling can be used by companies to meet their load requirements, rather than having to keep up with top loads in traditional data centers. AWS auto-scaling allows companies to adjust the number or removal of servers based on load. Companies can also use auto-scaling to detect when a server becomes unstable and terminate it. Then, they can launch another server to replace it. AWS provides companies with many options to meet their diverse needs. AWS's cloud computing services are what make it so dominant. It shouldn't surprise that AWS is still the market leader. AWS is still the market leader in cloud computing, despite the fact that AWS rivals like Google, Microsoft, and others experienced higher Q1 2017 growth than AWS. However, Amazon's rapid initiative in its early years and price drops, infrastructure improvements, and constant innovation make it stand out. Companies like Google and Microsoft are also making gains in this market, however, with their machine learning and artificial intelligence platforms. Amazon must continue to be the leader in cloud services by being innovative and fast when implementing artificial intelligence platforms. It will be fascinating to see what Amazon does to maintain its competitive edge in cloud market battles.
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