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.