Monday, November 11, 2013

Amazon Web Services

Amazon Web Services is the most disruptive threat ever faced by the traditional set of enterprise vendors. Why? AWS allows companies to build and deploy applications with virtually limitless scalability quickly. It's secure, saves a ton of money in data center expenses, provides strong data recovery options and removes the need to install new hardware, set up and configure new software and deal with the typical on premise IT challenges. To make things even more daunting, Amazon is happy with high single digit profit margins in this business, which is dramatically lower than the traditional enterprise margins (30-60%). They are taking the same tact as they have with all their business lines. For those closely following this sector, this isn't new news.