Tag Archives: Industry News

Why AWS Dominates The Cloud Services Marketplace

Post Syndicated from Laurent Harvey original https://www.anchor.com.au/blog/2020/11/why-aws-dominates-the-cloud-services-marketplace/

Year after year, AWS maintains a very significant lead in the cloud marketplace over its closest competitors, including Microsoft Azure, Google Cloud Platform, as well as a number of other smaller cloud providers.

According to recent research published by Synergy Research Group, Amazon has 33% of the cloud infrastructure market share, with Microsoft trailing behind at 18%, and Google sitting at 9%.

So why has Amazon always been the leader of the pack when it comes to the major cloud service providers? The reasons for AWS’ significant lead may be more simple than you would first think. Below, we will go into just a few of the many reasons AWS has maintained such a dominant lead since its conception.

It’s Been Around The Longest

In any race, one of the most valuable things you can have is a head start. Amazon launched Amazon Web Services (AWS) back in 2006 and began offering their initial cloud computing service offerings to, primarily, developers. Their initial service offerings included Amazon S3 cloud storage, SQS, and EC2.

Google and Microsoft had dabbled in their own Cloud offerings at the time, but didn’t put the same resources into it that Amazon did. Google launched their Cloud Platform in 2008, and Microsoft Azure later followed them and launched in 2010. However, neither Google nor Microsoft invested the same amount of resources early on. As a result, Amazon was able to establish a firm lead in the cloud services market. Other providers have been playing a never-ending battle of catch-up ever since.

Constant Innovation

Although we can attribute a lot of AWS’ success to their early foothold, they wouldn’t be able to maintain such a significant market share on that alone. Since the beginning, Amazon has continually innovated year after year.

Since 2006, Amazon have greatly increased their service offerings and created many innovative services. In fact, at the time of writing, AWS offers an astounding 175 individual products and services to consumers. Many of these services are original Amazon innovations. You would be hard-pressed to find a task you can’t accomplish with one of Amazon’s many services, and they’re only adding more and more to their catalogue each year. We expect to see a specific focus on Artificial Intelligence Services from Amazon in the next few years, as it’s one of the fastest-growing areas of cloud computing.

Price Cuts

One of the greatest reasons AWS stays not only incredibly competitive, while still leading the market, is their constant efforts to reduce consumer costs. In fact, research published in 2018 by TSO Logic found that AWS costs get lower every year. AWS has no problem maintaining their existing customer base with increasingly diminishing prices, while also attracting new customers. Plus, the larger AWS gets, the more ability they have to achieve even higher economies of scale, thus passing more price cuts onto their customers.

In Amazon’s own words, they state the following on their website:

“Benefit from massive economies of scale – By using cloud computing, you can achieve a lower variable cost than you can get on your own. Because usage from hundreds of thousands of customers is aggregated in the cloud, providers such as AWS can achieve higher economies of scale, which translates into lower pay as-you-go prices.”

Backed by Amazon

With the full long-term backing of Amazon, which comes in at #3 worldwide of all public corporations by market capitalization, AWS is quite simply a juggernaut of resources and capability. At the time of writing, Amazon has an estimated net value of $1.14 trillion. Amazon’s founder, Jeff Bezos, has an estimated worth of $190 billion.

With these kinds of numbers, Amazon are of course a formidable opponent for any newcomers to the cloud services marketplace. They also don’t look to be slowing down anytime soon in terms of their vision for the future and upcoming technological innovations.

Conclusion

AWS provides a platform which is ever-evolving and constantly becoming more financially accessible for businesses of all sizes. With new offerings, technology, features and opportunities for performance improvements every year, AWS provides a solid and proven platform for businesses who are looking to bring their business into the cloud.

If you think your business may benefit from taking advantage of AWS’ huge range of services, get in touch with us today for an expert consultation on how we can assist you in your journey to the cloud.

The post Why AWS Dominates The Cloud Services Marketplace appeared first on AWS Managed Services by Anchor.

Cloud Services VS COVID-19: How has the pandemic affected the Cloud Hosting industry?

Post Syndicated from Andy Haine original https://www.anchor.com.au/blog/2020/10/cloud-services-vs-covid-19-how-has-the-pandemic-affected-the-cloud-hosting-industry/

2020 has surely been a questionable year for the human race. An unexpected hail storm, if you will. But for the cloud services market? According to recent statistics, not a cloud in the sky.

Despite the unprecedented chaos that has befallen many facets of our daily lives during the COVID-19 pandemic, the world’s cloud spending has continued to significantly and consistently increase year-on-year. When it comes to the growth of cloud services, 2020 is no exception.

Ultimately, this makes sense. Demand and reliance on digital services has greatly increased this year as many businesses hurry to transform their bricks and mortar presences into digital income streams, in an attempt to survive such uncertain times. Grocery and home goods purchases, learning, working and even many social activities are now conducted primarily online as we fight the global challenges of COVID-19.

According to recent research published by Synergy Research Group, cloud spending passed $30 billion in the second quarter of 2020, an increase of $7.5 billion when compared to the same time last year. In terms of region-specific growth, cloud services have continued to grow steadily all around the world, seemingly regardless of how each region has uniquely been affected by the pandemic.

Of the largest Cloud service providers, AWS has continued to maintain a dominant lead in market share, steadily towering over Google and Microsoft’s cloud service offerings. At the time of writing, the market share is dispersed approximately as follows:

Amazon AWS: 33%

Microsoft Azure: 18%

Google Cloud Platform: 9%

Some of the smaller providers that trail this list include Alibaba Cloud, IBM, Salesforce, Tencent and Oracle.

Cloud infrastructure market share figures, including IaaS, PaaS, and Hosted Private Cloud: Q2 2020

For those of you who may have a penchant for the numbers, we’ve delved a little further into the figures for Logging as a service (LaaS), Platform as a service (PaaS) and hosted private cloud in 2020.

Public IaaS and PaaS services have maintained the majority of the market share, which grew by 34% in Q2. The lead that Amazon, Google, Microsoft Azure, Alibaba, and IBM hold over their competitors is even more significant in public cloud, where they control close to 80% of the market combined.

Regarding their findings, chief analyst at Synergy Research, John Dinsdale, had this to say:

“As far as cloud market numbers go, it’s almost as if there were no COVID-19 pandemic raging around the world. As enterprises struggle to adapt to new norms, the advantages of public cloud are amplified.” 

“The percentage growth rate is coming down, as it must when a market reaches enormous scale, but the incremental growth in absolute dollar terms remains truly impressive. The market remains on track to grow by well over 30% in 2020.”

As their findings indicate, the global pandemic certainly hasn’t slowed down the growth rate of Cloud services. With the pressure of more and more companies being forced online, or to shift their entire organisation to being able to work from home, the need to migrate to the cloud is clearly far greater than ever before.

John Dinsdale also had this to say:

“If anything, the pandemic has helped to highlight some of the main benefits of public cloud,” 

Chief among those benefits is the flexibility and scalability that cloud hosting offers. In a time where millions of workers have had to change the way they conduct their daily lives, and companies have had to quickly shift resources, the ability to be able to scale horizontally or vertically to accommodate for that shift in lifestyle is more important than ever. Where other industries have been devastated by COVID-19, the cloud services industry has proven to be more durable, largely due to its capacity to assist companies in tackling the numerous challenges that a pandemic inflicts.

Ready to tap in?

If you have been considering a switch to the cloud, or believe that your business could benefit from additional scalability, flexibility and durability during the new era of heightened online commerce, we strongly suggest consulting with a certified AWS partner, to make your move as smooth, secure and cost-efficient as possible.

Cloud services have proven to be one of the most resilient (and thriving) industries in a COVID-19 world. This can also be said of most companies who have utilised it to bring their businesses up-to-speed and online. If you’d like to tap into this success for your business alike, get in touch with one of our AWS-qualified experts today to learn how we can assist you.

The post Cloud Services VS COVID-19: How has the pandemic affected the Cloud Hosting industry? appeared first on AWS Managed Services by Anchor.