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Why Amazon Continues to Dominate the Public Cloud Market

According to second-quarter data published by the Synergy Research group, Amazon, with its Amazon Web Services (AWS) offering, is the dominant player in the public cloud market - despite seeing only 1% growth in market share over the last four quarters. However, Amazon arguably doesn't need to worry about that seemingly small percentage. It commands 34% of the market, compared to 11% held by Microsoft, the brand holding the second spot.

Amazon is leaving other participants in the public cloud marketplace in the dust. Let's take a look at some reasons why AWS continues to assert such a strong showing.

Amazon Was the First Brand in the Public Cloud Market

Analysts argue although there are some extremely impressive projections given regarding the public cloud market, it's hard to know how accurate they are. That's because the cloud market is growing at such an astounding rate, and it's anyone's guess whether that phenomenon will still be occurring a few years from now.

However, one of the major reasons why AWS enjoys such substantial success in the market is because it was public cloud provider on the scene. Furthermore, it had no true competitors for years after the launch, which meant Amazon had plenty of time to perfect the service without worrying about getting overshadowed by other brands.

Brands and Clients See Amazon as a Trustworthy Option

An extremely detailed report about cloud providers released by Gartner, a technology analysis firm, described Amazon as a "thought leader and reference point" for competitors and a "safe choice" for customers. Indeed, AWS has successfully appealed to a gigantic portion of the market by showcasing how it's a mature provider that already has over a decade of experience providing cloud services to consumers.

AWS also provides enterprise-level service like a well-oiled machine, and that strength could be particularly advantageous for large companies that are weighing the pros and cons of becoming more reliant on cloud computing. That's especially true considering a report indicating that 66% of CFOs at tech firms think that the area characterized by the greatest number of mergers and acquisitions will be software - which includes cloud computing.

Although most companies see cloud providers as viable solutions for their business goals, some IT experts still balk at the idea of making the switch to the cloud. Those fears ease when the hesitant professionals realize how cloud computing promotes unrivaled scalability, and Amazon is a recognizable brand to provide it. Plus, it's possible to outsource many of the repetitive tasks that could otherwise take so much time out of a busy IT team's daily activities. 

That final listed benefit is now particularly feasible since Amazon announced the availability of what it called Amazon Managed Services at the end of last year. According to the company, that new service relieves IT workers of some of their "grunt work" tasks and let businesses facilitate cloud adoption very quickly.

Continual Improvements in Availability and Services

Think about how Amazon runs all areas of its business, and it should come as no surprise that AWS continues to be a favorable choice in the marketplace, due in large part to ongoing infrastructure and service expansions.

AWS places two data centers in various regions around the world. There are regions on opposite ends of the United States, plus in places ranging from Brazil to Ireland. Amazon even has a dedicated setup for the United States' military.

Furthermore, according to the above Gartner report, Amazon has partnerships with over 2,000 third-party providers. That reality greatly increases the likelihood that even the pickiest and most demanding customers will find the services they need through AWS, and many others to potentially tap into for the future.

Expect Amazon to keep an eye on competitors' progress and attempt to stay ahead of the curve by perpetually introducing more services.

These are not the only reasons why AWS is such a strong force in the public cloud market, but they are some of the most compelling factors.

Any company that wants to catch Amazon or even demonstrate a real threat has a tough task ahead.


About the Author

Kayla Matthews is a tech-loving blogger who writes and edits Follow her on Twitter to read all of her latest posts! 
Published Monday, August 14, 2017 7:27 AM by David Marshall
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