Amazon differentiates on scale | #re:Invent2013
TheCUBE hosts John Furrier and Dave Vellante concluded Amazon’s action-packed re:Invent 2013 conference with a breakdown of the newest AWS services followed by an in-depth discussion of the competitive landscape for cloud computing.
Amazon unveiled a slew of solutions during the three-day event, including a stream processing engine called Kinesis, RDS replication across multiple Availability Zones, and two new instance types called i2 and C3. Designed for computationally intensive workloads, the latter utilizes flash storage and cutting edge Xeon E5 processors to optimize performance – potentially enabling users to reduce software licensing costs, Vellante notes.
The way Furrier sees it, Amazon is doubling down on API-based services in a push to stay ahead of the data economy. The company’s strategy is three-pronged, spanning IaaS, the Redshift data warehousing layer, and the managed services that run on top. The firm is also diversifying into VDI and application streaming, albeit several years behind the competition.
What Amazon lacks in novelty, AWS makes up in scale, according to Furrier. He explains that:
“What Amazon has is pure cloud. Their differentiation is the scale. When they roll out a VDI service for instance – that’s a great example of kind of an old feature – they’re commoditizing it; it becomes a feature in their stack. Is that a massive game changer? No, it’s just commoditization. Amazon’s strategy is very clear: knock down the commodity components that need to be in the stack and differentiate on large scale and ultimately the new business models around developers. To me, that will be the game changer.”
Furrier believes that the company needs to continue commoditizing “other people’s advantage and ship differentiation to where their assets are at large scale” to grow in the enterprise. Drawing parallels between the public cloud and virtualization, he goes on to say that vendors will have to embrace AWS or risk ending up on the losing side of enterprise IT.
Watch the video below for the full analysis.
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