No, Amazon Web Services is Not Dying as Articles Suggest

No, AWS is not struggling for its life as GigaOM suggests in its last article.

The popular online tech magazine put together different aspects of the actual cloud computing public market and connect them with the recent drop of revenues for AWS (a 3% drop). The final conclusion points out a though moment for AWS, with more competitors like Azure and Google that are trying to steal big customers from Amazon. Dropbox and AirBnB in the first line.

Even if it’s true that companies like Dropbox are looking for different solutions and, in some cases, are considering private and hybrid cloud solutions, what’s is nonsense in this article is considering such a small and simple case to say that AWS is struggling and is facing problems in its growth. We need some numbers to put this in context:

  • AWS has a 90% growth YoY in the last years.
  • The revenues drop is due mainly to the latest price cut. Amazon has regularly announced price cuts in the last years. A revenue drop is a normal consequence. It was more evident in this case because the price cut was particularly huge.
  • AWS has 5 times the computing capacity of other cloud computing IaaS competitors.
  • AWS has estimated revenues for more than 3 billions/year.

There are many ways to look at the problem, of course, but it is way too much considering AWS in a difficult situation.

A good article from TheRegister puts in perspective why Amazon could face problems in the near future because of its historical strategy of low margins and price cutting, something that now Google is using against AWS with Google Cloud Platform. If Amazon has a few competitors in the retails space that can beat the company, in the cloud computing industry it is going to fight with giants like Google and Microsoft, that have literally billions to spend and are not interested in a small market share.

Microsoft and other companies like IBM can’t afford a failure in this industry. If AWS is still a small part of Amazon, in terms of revenues and profits, for Microsoft or IBM, cloud computing is a mission with no fail option and that’s why they must take risks.

That said if we take a look at the evolution of AWS and at the state of the cloud computing industry, we can clearly see how Amazon is still a leader on the technology and partnerships front. There is no public cloud that today is comparable to AWS in terms of services and capabilities and looking at the ecosystem, Amazon is still the number one in terms of partners that are building and doing business inside its cloud platform.

What’s your opinion?

Stefano Bellasio

Written by

Stefano Bellasio

Stefano's a computer engineering guy that loves building products. He's the CEO and co-founder of CloudAcademy.com. All his experience is in the web hosting and cloud computing industry where he started other companies before. He loves talking with all readers of Cloud Academy blog, so feel free to email him at stefano@cloudacademy.com!


Related Posts

Alisha Reyes
Alisha Reyes
— April 9, 2020

New on Cloud Academy: AWS Solutions Architect – Associate Exam Prep, Azure Courses, Google Associate Cloud Engineer Exam Prep, Programming Labs, and Much More

Free content on Cloud Academy More and more customers are relying on our technology and content to keep upskilling their people in these months, and we are doing our best to keep supporting them. While the world fights the COVID-19 pandemic, we wanted to make a small contribution to he...

Read more
  • AWS
  • Azure
  • Google Cloud Platform
  • programming
Joe Nemer
Joe Nemer
— April 3, 2020

Breaking News: All AWS Certification Exams Now Available Online

Remote proctoring for all AWS certifications Cloud Academy is an Advanced AWS Technology Partner, and we are happy to announce all AWS certification exams are available online!  What does this mean for you? You can stay focused on your certification goal. Or you can start a certifica...

Read more
  • AWS
  • AWS certification
  • AWS Certifications
Connie Benton
Connie Benton
— April 1, 2020

How To Build a Career with AWS Certifications

From Iaas and PaaS solutions to digital marketing, cloud computing reshapes the world of technology. As the influence of this technology grows, so does investment. Tens of billions of dollars are being spent on cloud computing-related services each year. This influx is continuing to inc...

Read more
  • AWS
  • Certifications
Vijayakumar Athithan
Vijayakumar Athithan
— March 27, 2020

What is Cognito in AWS?

Web applications usually allow a valid username and password combination for successful sign in to the application. Modern authentication flows incorporate more approaches to ensure user authentication. When using AWS, this is no exception, thanks to the abilities and features offered b...

Read more
  • AWS
  • AWS Cognito
  • Solutions Architect
Avatar
Andrew Larkin
— March 20, 2020

The 12 AWS Certifications: Which is Right for You and Your Team?

As companies increasingly shift workloads to the public cloud, cloud computing has moved from a nice-to-have to a core competency in the enterprise. This shift requires a new set of skills to design, deploy, and manage applications in cloud computing. As the market leader and most ma...

Read more
  • AWS
  • AWS Certifications
Alisha Reyes
Alisha Reyes
— March 17, 2020

Cloud Academy’s Blog Digest: How Do AWS Certifications Increase Your Employability, How to Become a Microsoft Certified Azure Data Engineer, and more

With everything going on right now, it's likely that the only thing you've been reading lately is related to the coronavirus pandemic. It's important to stay informed during these times, but it's also good to jump into something that can take your mind off of the current situation for j...

Read more
  • AWS
  • Azure
  • blog digest
  • Certifications
  • Cloud Academy
  • programming
  • Security
Avatar
Cloud Academy Team
— March 13, 2020

Which Certifications Should I Get?

As we mentioned in an earlier post, the old AWS slogan, “Cloud is the new normal” is indeed a reality today. Really, cloud has been the new normal for a while now and getting credentials has become an increasingly effective way to quickly showcase your abilities to recruiters and compan...

Read more
  • AWS
  • Azure
  • Certifications
  • Cloud Computing
  • Google Cloud Platform
Alisha Reyes
Alisha Reyes
— March 7, 2020

New on Cloud Academy: Intro to GitOps; AWS Courses; Java, Python, Amazon Linux 2, Ubuntu, & Docker Playgrounds; and much more

New Lab Playgrounds This month, our Content Team released six new "playground labs." Our playground labs provide a safe and secure sandbox environment for you to explore your own ideas, follow along with Cloud Academy courses, or answer your own questions — all without having to instal...

Read more
  • AWS
  • Azure
  • gitops
  • Google Cloud Platform
  • lab playground
  • programming
Alisha Reyes
Alisha Reyes
— March 6, 2020

New on Cloud Academy: Intro to GitOps; AWS Courses; Java, Python, Amazon Linux 2, Ubuntu, & Docker Playgrounds; and much more

New Lab Playgrounds This month, our Content Team released six new "playground labs." Our playground labs provide a safe and secure sandbox environment for you to explore your own ideas, follow along with Cloud Academy courses, or answer your own questions — all without having to instal...

Read more
  • AWS
  • Azure
  • gitops
  • Google Cloud Platform
  • lab playground
  • programming
Patrick Navarro
Patrick Navarro
— March 4, 2020

AWS Certifications: How Do They Increase Your Employability and Progress Your Career?

AWS certifications are no walk in the park. They’re designed to validate in-depth, specialist knowledge and comprehensive experience, often requiring months of dedicated studying to earn even for those already working with the cloud platform. But the rewards that AWS professionals ca...

Read more
  • AWS
  • AWS certification
  • certification
Avatar
Chandan Patra
— February 21, 2020

Elasticsearch vs. CloudSearch: AWS Cloud Search Choices

Elasticsearch vs. CloudSearch: What's the main difference? Let's compare AWS-based cloud tools: Elasticsearch vs. CloudSearch. While both services use proven technologies, Elasticsearch is more popular, open source, and has a flexible API to use for customization; in comparison, CloudS...

Read more
  • AWS
  • Azure
  • cloudsearch
  • elasticsearch
Avatar
Andrew Larkin
— February 13, 2020

Cloud Academy Content Roadmap Updates

Welcome to our Q1 2020 roadmap. This is the content we plan to build over the next three months, between February 1 - and April 30, 2020. Let's look at some of our roadmap highlights. Atlassian Bamboo for CI/CD We had a lot of requests for practical guides on how to apply DevOps tool...

Read more
  • Artificial Intelligence
  • AWS
  • Azure
  • Docker
  • Google Cloud Platform
  • Kubernetes
  • Machine Learning