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

Amanda Cross
Amanda Cross
— January 7, 2021

New Content: AWS Terraform, Java Programming Lab Challenges, Azure DP-900 & DP-300 Certification Exam Prep, Plus Plenty More Amazon, Google, Microsoft, and Big Data Courses

This month our Content Team continues building the catalog of courses for everyone learning about AWS, GCP, and Microsoft Azure. In addition, this month’s updates include several Java programming lab challenges and a couple of courses on big data. In total, we released five new learning...

Read more
  • AWS
  • Azure
  • DevOps
  • Google Cloud Platform
  • Machine Learning
  • programming
Avatar
Stuart Scott
— December 17, 2020

Where Should You Be Focusing Your AWS Security Efforts?

Another day, another re:Invent session! This time I listened to Stephen Schmidt’s session, “AWS Security: Where we've been, where we're going.” Amongst covering the highlights of AWS security during 2020, a number of newly added AWS features/services were discussed, including: AWS Audit...

Read more
  • AWS
  • AWS re:Invent
  • cloud security
Joe Nemer
Joe Nemer
— December 4, 2020

AWS re:Invent: 2020 Keynote Top Highlights and More

We’ve gotten through the first five days of the special all-virtual 2020 edition of AWS re:Invent. It’s always a really exciting time for practitioners in the field to see what features and services AWS has cooked up for the year ahead.  This year’s conference is a marathon and not a...

Read more
  • AWS
  • AWS Glue Elastic Views
  • AWS re:Invent
Bryony Harrower
Bryony Harrower
— November 6, 2020

WARNING: Great Cloud Content Ahead

At Cloud Academy, content is at the heart of what we do. We work with the world’s leading cloud and operations teams to develop video courses and learning paths that accelerate teams and drive digital transformation. First and foremost, we listen to our customers’ needs and we stay ahea...

Read more
  • AWS
  • Azure
  • content roadmap
  • GCP
Joe Nemer
Joe Nemer
— October 25, 2020

Excelling in AWS, Azure, and Beyond – How Danut Prisacaru Prepares for the Future

Meet Danut Prisacaru. Danut has been a Software Architect for the past 10 years and has been involved in Software Engineering for 30 years. He’s passionate about software and learning, and jokes that coding is basically the only thing he can do well (!). We think his enthusiasm shines t...

Read more
  • AWS
  • careers
  • champions
  • upskilling
Joe Nemer
Joe Nemer
— October 14, 2020

New Content: AWS Data Analytics – Specialty Certification, Azure AI-900 Certification, Plus New Learning Paths, Courses, Labs, and More

This month our Content Team released two big certification Learning Paths: the AWS Certified Data Analytics - Speciality, and the Azure AI Fundamentals AI-900. In total, we released four new Learning Paths, 16 courses, 24 assessments, and 11 labs.  New content on Cloud Academy At any ...

Read more
  • AWS
  • Azure
  • DevOps
  • Google Cloud Platform
  • Machine Learning
  • programming
Joe Nemer
Joe Nemer
— September 15, 2020

New Content: Azure DP-100 Certification, Alibaba Cloud Certified Associate Prep, 13 Security Labs, and Much More

This past month our Content Team served up a heaping spoonful of new and updated content. Not only did our experts release the brand new Azure DP-100 Certification Learning Path, but they also created 18 new hands-on labs — and so much more! New content on Cloud Academy At any time, y...

Read more
  • AWS
  • Azure
  • DevOps
  • Google Cloud Platform
  • Machine Learning
  • programming
Joe Nemer
Joe Nemer
— August 28, 2020

AWS Certification Practice Exam: What to Expect from Test Questions

If you’re building applications on the AWS cloud or looking to get started in cloud computing, certification is a way to build deep knowledge in key services unique to the AWS platform. AWS currently offers 12 certifications that cover major cloud roles including Solutions Architect, De...

Read more
  • AWS
  • AWS Certifications
Patrick Navarro
Patrick Navarro
— August 25, 2020

Overcoming Unprecedented Business Challenges with AWS

From auto-scaling applications with high availability to video conferencing that’s used by everyone, every day —  cloud technology has never been more popular or in-demand. But what does this mean for experienced cloud professionals and the challenges they face as they carve out a new p...

Read more
  • AWS
  • Cloud Adoption
  • digital transformation
Avatar
Andrew Larkin
— August 18, 2020

Constant Content: Cloud Academy’s Q3 2020 Roadmap

Hello —  Andy Larkin here, VP of Content at Cloud Academy. I am pleased to release our roadmap for the next three months of 2020 — August through October. Let me walk you through the content we have planned for you and how this content can help you gain skills, get certified, and...

Read more
  • alibaba
  • AWS
  • Azure
  • content roadmap
  • Content updates
  • DevOps
  • GCP
  • Google Cloud
  • New content
Alisha Reyes
Alisha Reyes
— August 5, 2020

New Content: Alibaba, Azure AZ-303 and AZ-304, Site Reliability Engineering (SRE) Foundation, Python 3 Programming, 16 Hands-on Labs, and Much More

This month our Content Team did an amazing job at publishing and updating a ton of new content. Not only did our experts release the brand new AZ-303 and AZ-304 Certification Learning Paths, but they also created 16 new hands-on labs — and so much more! New content on Cloud Academy At...

Read more
  • AWS
  • Azure
  • DevOps
  • Google Cloud Platform
  • Machine Learning
  • programming
Alisha Reyes
Alisha Reyes
— July 16, 2020

Blog Digest: Which Certifications Should I Get?, The 12 Microsoft Azure Certifications, 6 Ways to Prevent a Data Breach, and More

This month, we were excited to announce that Cloud Academy was recognized in the G2 Summer 2020 reports! These reports highlight the top-rated solutions in the industry, as chosen by the source that matters most: customers. We're grateful to have been nominated as a High Performer in se...

Read more
  • AWS
  • Azure
  • blog digest
  • Certifications
  • Cloud Academy
  • OWASP
  • OWASP Top 10
  • Security
  • VPCs