Amazon Web Services has experienced meteoric growth during the past decade. But now analysts are starting to question: Can the company keep it going?
It will be a big question at the company’s annual re:Invent conference next week in Las Vegas.
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Alan Krans, an analyst at New Hampshire-based Technology Business Research says no doubt that the public IaaS cloud market will continue to grow in the coming years, which will continue to benefit AWS. But customers are consciously reconsidering how they’re consuming cloud services now, and they’re increasingly embracing hybrid clouds that include on-premises IT. For AWS to be a significant part of that future, Krans says AWS needs to build up its hybrid cloud offerings.
AWS has done a good job evolving itself, Krans notes. The company has increased its staff that support enterprise clients. It continues to expand its breadth and depth of services it offers from the cloud too. And AWS has been poaching IT talent from competitors.
But as the cloud market has matured, customers are looking to integrate their public cloud in with their existing IT. “These considerations (of customers) go well beyond AWS’ traditional focus on pure self-service, pay-as-you-go, low-cost IT services,” Krans writes in a recent report.
Krans goes on:
Amazon’s success hinges on expanding investments in sales, marketing and development to build more open, standard support into its services; partnering and aligning more widely with cloud, traditional IT and service providers; and packaging its technology into solutions more effectively. All of those initiatives will require additional headcount, training and commitment to increase its involvement in the hybrid cloud market. We expect Amazon, driven by the corporate need for growth and funded by its current profitability, to implement these strategies so its cloud disruption does not tail off just as hybrid cloud takes off.
At the re:Invent conference next week in Las Vegas, we’ll see just how much reinventing AWS has done itself in further embracing the hybrid cloud.