recommended reading

Commentary: Amazon Takes On Enterprise Cloud Companies

Amazon CEO Jeff Bezos

Amazon CEO Jeff Bezos // Reed Saxon/AP file photo

“I find it really hard to believe that we cannot collectively beat a company that sells books,” said Carl Eschenbach, the chief operating officer of VMWare, at the company’s recent annual confab with its partners and resellers. VMWare competes with Amazon to provide businesses with computing and IT services in the cloud and—I’m sorry to say to Eschenbach—he might soon have to suspend his disbelief.

The problem for Amazon’s competitors, as always, is that Amazon is headed by a CEO who is perfectly happy not to make any profit on the goods he sells. The Street loves Amazon anyway because analysts believe in Jeff Bezos’s larger vision, which is that the internet is still (still!) in its nascent stages, and what matters is grabbing as much market share as possible while sucking all the air out of the room so your competitors suffocate and, some day, you are the biggest retail/media/cloud company on the planet.

As evidenced by Eschenbach’s comments, Amazon’s competitors in cloud computing are in denial about how well Amazon’s strategy of being the lowest price provider will work in a space as high tech, and high stakes, as cloud computing. Delivering books is not the same thing as guaranteeing that a Fortune 500 company’s most critical IT systems are always available, they say. Amazon’s cloud is unreliable, they observe.

Read the rest at Quartz.

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • It’s Time for the Federal Government to Embrace Wireless and Mobility

    The United States has turned a corner on the adoption of mobile phones, tablets and other smart devices, outpacing traditional desktop and laptop sales by a wide margin. This issue brief discusses the state of wireless and mobility in federal government and outlines why now is the time to embrace these technologies in government.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • A New Security Architecture for Federal Networks

    Federal government networks are under constant attack, and the number of those attacks is increasing. This issue brief discusses today's threats and a new model for the future.

    Download
  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Software-Defined Networking

    So many demands are being placed on federal information technology networks, which must handle vast amounts of data, accommodate voice and video, and cope with a multitude of highly connected devices while keeping government information secure from cyber threats. This issue brief discusses the state of SDN in the federal government and the path forward.

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download

When you download a report, your information may be shared with the underwriters of that document.