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December 5, 2016updated 13 Jan 2017 11:57am

World’s biggest cloud – How AWS plans to continue to be the dominant cloud player

The cloud company provides plenty of food for thought for its market competitors.

By James Nunns

An annual run rate of over $12bn, a cloud that is 10x bigger than its next 14 competitors combined and a conference with 32,000 attendees – over 10,000 more than the previous year. It’s pretty safe to say that things are going well for Amazon Web Services.

A recent report from 451 Research said that 2017 will see an AWS+1 strategy, meaning that the cloud company will almost be the default choice for cloud alongside another provider in 2017. The success of shouldn’t be undervalued.

“AWS is still the biggest player in the cloud space. In a decade AWS has achieved revenues of $12bn and an enterprise value of some $150bn, or half the market cap of Amazon.com. Looking at it another way – it took IBM a century to reach the same valuation,” said William Fellows, 451 Research vice president.

Yes we are talking about very different generations, so where IBM was one of the first to really invent the modern technology era, AWS isn’t, in so far that technology was already prevalent in the 2000’s when AWS first appeared.AWS announcements,

For who adopted it, Cloud, in its many forms, has become essential to the running and success of a business.

The traditional B2B enterprise IT market continues to dwarf cloud by size. but cloud is is eating into it and all the research points to cloud computing becoming the dominant operating model – it is just a question of when.

AWS is currently at the top of that disruptive market in its own segment and it’s been showing what a modern technology company can do at its annual re:Invent conference in Las Vegas. Quora put attendance at the 2015 conference at around 19,000, that has rocketed to 32,000 in 2016.

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I’ve attended and covered dozens of large tech vendor conferences over the past two years and while conferences like Oracle’s OpenWorld comes close to the sheer volume of announcements, nothing touches the 24 made at re:Invent this year.

That number is solely new products and services from AWS, that doesn’t include announcements being made about customer deployments of AWS, which were made by the likes of Workday, or the vast number of announcements made by the AWS partner ecosystem.

There remain serious challenges to overcome for AWS. Growing into highly regulated sectors is one of those challenges, which is why many of the customer examples on stage would come from these areas, such as FINRA.

There is a balance to be struck between flexibility and reassurance for customers. By positioning the cloud as customer friendly, AWS wants the customer to feel in control and is positioning itself as unlike older, more traditional software companies. This position is not unlike that of other cloud providers who maintain that their approach is customer first or customer led, or customer centric. The play is two tier. One tier to reassure the end user, one for the developer community.

Read Next Page: Why did Werner Vogels hate his relationship with software vendors – Clue: Guess who was in charge?

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