Public cloud providers are catching up to market leader Amazon Web Services in the number of services they offer. But no other provider comes close to the market leader in terms of the underlying capabilities, according to its CEO Andy Jassy.
Speaking at the AWS RE:Invent conference in Las Vegas this week, Jassy began the major keynote by defending AWS’s capabilities, suggesting competitors were, despite their claims, still a distant second in the infrastructure as a service market.
According to Jassy, no other cloud provider has the “breadth and depth” of AWS. Jassy took swipes at competitors, singling out Oracle and Microsoft.
Developed 12 and a half years ago as the infrastructure to support Amazon’s retail business, AWS has exploded in popularity after being offered to others as a service. Today AWS is the clear market leader and generates more revenue for Amazon than its ecommerce business at significantly higher margins.
It now dominates the public cloud market, taking over half of the market share — around 4x more than the nearest competitor.
According to Jassy, the public cloud provider’s success has triggered several instances of competitors copying AWS cloud services just to keep up. But often those services don’t deliver capabilities, a fault that doesn’t take long for developers — AWS calls them “builders” —to figure out.
Jassy claimed competitors were going so far as to base their product strategy on copying what cloud services AWS launched so they could “tick the box”.
“Analysts will fall for that. It’s possible that for some short period of time some people will fall for that. But builders aren’t going to fall for that.”
Look out Larry
While not acknowledging AWS’s main competitor, Microsoft’s Azure, by name, Jassy singled out the “second place provider” for its relative lack of features and what Jassy said was an overstated growth rate.
He said while the second place provider had a higher growth rate in percentage this year, its smaller base meant that in dollar terms AWS was still growing more. Amazon Q3 results showed AWS had a 46 per cent growth in revenue year on year and a $27 billion.
“If you take the provider that most people think is second in the marketplace, in their last financials they grew 76 per cent year-over-year.
“Seventy-six per cent is more [than AWS], but in reality that represents about $1 billion of growth,” Jassy said.
“If you look at the 46 per cent [growth] of AWS, on our much larger base, it represents $2.1bn. AWS not only has a significant market segment leadership position, but also on an absolutely revenue basis we are growing meaningfully faster than anybody else.”
Oracle also drew heat from the AWS chief. While explaining the the current market share for cloud providers with a chart, Jassy said some competitors do not show up because they do not generate enough revenue.
“Some providers don’t have enough revenue to show up here,” Jassy said in reference to the market share chart.
“And they only get attention when they pop their heads up themselves,” Jassy said, as Oracle founder Larry Ellison’s head popped up in various places around the chart.
AWS and Oracle have traded barbs over the capabilities of Oracle databases. AWS is currently migrating entirely out of Oracle databases with less than 15 per cent remaining.
— Jim McGinn (@wvuginn) November 28, 2018