Another way to put it.
AWS will require $50 Billion in Investments By 2020.
Profit potential uncertain.
Shareholders not worried.
Investment Firm Expects AWS Will Hit $20 Billion In Revenues By 2020
11–20 of 25 posts
Re: Investment Firm Expects AWS Will Hit $20 Billion In Revenues By 2020
#12A lot of people are saying the projecting out to 2020 is a ridiculous idea in fast moving industries like tech. But there's already a cliche that when AWS has an outage half of your favourite sites go down, and there's a reason for that - there is NO serious alternative to the AWS platform. They're years ahead of the little competition they have; no single other system does half of the things that AWS can. The scale…
Who would you say are the main AWS competitors today (at least in part)?
This isn't my specialty, but I suppose the list includes Microsoft's Windows Azure and the Google Cloud Platform. There are some open source efforts to watch as well, including OpenStack (backed by Rackspace and others). No doubt I've missed some.
There's plenty of time for those competitors to catch up to AWS by 2020.
Re: Investment Firm Expects AWS Will Hit $20 Billion In Revenues By 2020
#13A lot of people are saying the projecting out to 2020 is a ridiculous idea in fast moving industries like tech. But there's already a cliche that when AWS has an outage half of your favourite sites go down, and there's a reason for that - there is NO serious alternative to the AWS platform. They're years ahead of the little competition they have; no single other system does half of the things that AWS can. The scale…
Who would you say are the main AWS competitors today (at least in part)? This isn't my specialty, but I suppose the list includes Microsoft's Windows Azure and the Google Cloud Platform. There are some open source efforts to watch as well, including OpenStack (backed by Rackspace and others). No doubt I've missed some. There's plenty of time for those competitors to catch up to AWS by 2020.
I think the biggest direct competitors are Rackspace, Windows Azure, Google Cloud, HP, and Dell. Indirectly, VMware and OpenStack are huge competitors too. Lots of companies are trying to decide how their existing infrastructure fits in with cloud computing, and the "private cloud" is one likely choice.
None of these have the wide product functionality that AWS has -- yet. Amazon has a multi-year head start on most of these companies, but as you mention, there's lots of time to make progress before 2020.
Re: Investment Firm Expects AWS Will Hit $20 Billion In Revenues By 2020
#14A lot of people are saying the projecting out to 2020 is a ridiculous idea in fast moving industries like tech. But there's already a cliche that when AWS has an outage half of your favourite sites go down, and there's a reason for that - there is NO serious alternative to the AWS platform. They're years ahead of the little competition they have; no single other system does half of the things that AWS can. The scale…
> The scale of the engineering effort required to compete with AWS is enormous, and no-one's really trying
I would suggest that you're wildly misinformed. Not only AWS has plenty of competitors who're silently kicking their butt one area at a time, but even as pure cloud environments go, the value of virtualization continues to evaporate as hardware continues to grow faster than the population.
In other words, theoretically you'll be just able to purchase a single $5K DELL server in a few years and run an Airbnb-sized business on it. As the Moore's law keeps going, it's getting more and more insane for a start-up to invest so much of software fault-tolerance and scaling around AWS-style farms of barely alive virtualized servers from the 90s.
For a lot of businesses even today, a single Dell R720 with a Chef script makes a lot more sense (in terms of uptime, hosting bill and engineering efforts) than a small army of VPS boxes.
If you're not CPU-bound, if you don't need x100 spikes of compute, then you don't need to overpay for AWS-style elasticity, especially in terms of engineering that's required to get stable on it.
Re: Investment Firm Expects AWS Will Hit $20 Billion In Revenues By 2020
#15A lot of people are saying the projecting out to 2020 is a ridiculous idea in fast moving industries like tech. But there's already a cliche that when AWS has an outage half of your favourite sites go down, and there's a reason for that - there is NO serious alternative to the AWS platform. They're years ahead of the little competition they have; no single other system does half of the things that AWS can. The scale…
Who would you say are the main AWS competitors today (at least in part)? This isn't my specialty, but I suppose the list includes Microsoft's Windows Azure and the Google Cloud Platform. There are some open source efforts to watch as well, including OpenStack (backed by Rackspace and others). No doubt I've missed some. There's plenty of time for those competitors to catch up to AWS by 2020.
>> There's plenty of time for those competitors to catch up to AWS by 2020.
Very true, but this fails to take into account that Amazon will not stay stagnant till 2020 for competitors to catch up.
Because Amazon already have a healthy majority of the users/marketshare, they are perhaps better positioned to understand and innovate upon the future needs of these customers, and keep building their product offerings by anticipating where the "puck is going to be."
With that said, nothing is set in stone, so competitors might as well overtake AWS by 2020, but if I had to bet my money, I'd bet it on Amazon.
Re: Investment Firm Expects AWS Will Hit $20 Billion In Revenues By 2020
#16Earlier quoted context omitted.
Who would you say are the main AWS competitors today (at least in part)? This isn't my specialty, but I suppose the list includes Microsoft's Windows Azure and the Google Cloud Platform. There are some open source efforts to watch as well, including OpenStack (backed by Rackspace and others). No doubt I've missed some. There's plenty of time for those competitors to catch up to AWS by 2020.
>> There's plenty of time for those competitors to catch up to AWS by 2020. Very true, but this fails to take into account that Amazon will not stay stagnant till 2020 for competitors to catch up. Because Amazon already have a healthy majority of the users/marketshare, they are perhaps better positioned to understand and innovate upon the future needs of these customers, and keep building their product offerings by a…
Having majority of the marketshare in the marketplace is hardly the best breeding ground for innovation. That is when companies usually stagnate and entrench themselves.
Re: Investment Firm Expects AWS Will Hit $20 Billion In Revenues By 2020
#17Amazon will probably have some very strong competitors. For starters, there will be national-champion types, who will prosper due to geo-compliance issues if nothing else. (I.e., rules restricting cross-border data transfer.) Other security compliance will also matter, both pro- (strong enough security) and anti- (government back doors). OpenStack is currently an Amazon fast follower, but that's apt to change, with OpenStack getting some technical advantages as well. And OpenStack is likely to maintain the very big advantage you can move it among providers and hardware configurations, on-premise or off-.
Re: Investment Firm Expects AWS Will Hit $20 Billion In Revenues By 2020
#18Earlier quoted context omitted.
>> There's plenty of time for those competitors to catch up to AWS by 2020. Very true, but this fails to take into account that Amazon will not stay stagnant till 2020 for competitors to catch up. Because Amazon already have a healthy majority of the users/marketshare, they are perhaps better positioned to understand and innovate upon the future needs of these customers, and keep building their product offerings by a…
Having majority of the marketshare in the marketplace is hardly the best breeding ground for innovation. That is when companies usually stagnate and entrench themselves.
Nonsense. Haven't you learned anything from the fact that IBM still dominates computing today??
:)
Re: Investment Firm Expects AWS Will Hit $20 Billion In Revenues By 2020
#19> So one day Jeff Bezos issued a mandate. He's doing that all the time, of course, and people scramble like ants being pounded with a rubber mallet whenever it happens. But on one occasion -- back around 2002 I think, plus or minus a year -- he issued a mandate that was so out there, so huge and eye-bulgingly ponderous, that it made all of his other mandates look like unsolicited peer bonuses... https://plus.google.c…
Since the writing of this post, AMZN has gone up ~150%.
The relationship between share price and Amazon financial results has always been a mystery to me. As are Apples.
Re: Investment Firm Expects AWS Will Hit $20 Billion In Revenues By 2020
#20A lot of people are saying the projecting out to 2020 is a ridiculous idea in fast moving industries like tech. But there's already a cliche that when AWS has an outage half of your favourite sites go down, and there's a reason for that - there is NO serious alternative to the AWS platform. They're years ahead of the little competition they have; no single other system does half of the things that AWS can. The scale…
> The scale of the engineering effort required to compete with AWS is enormous, and no-one's really trying I would suggest that you're wildly misinformed. Not only AWS has plenty of competitors who're silently kicking their butt one area at a time, but even as pure cloud environments go, the value of virtualization continues to evaporate as hardware continues to grow faster than the population. In other words, theore…
One server will never be enough. You need redundancy in case of a fire. Don't forget to optimize kernels, load balance, ensure security patches get applied, etc. I know I don't want that world, so I pay Google a measly amount to run App Engine for me and spin up new instances as my service needs them. I will be very surprised if the future is not bigger and better clouds.