Factors That Help Amazon.com, Inc. (AMZN)’s AWS To Dominate The Cloud Services Market


Amazon.com, Inc. (NASDAQ:AMZN) currently dominates the public cloud market, with the latest Gartner report citing its IaaS capacity to be 10 times larger than that of 14 of its nearest competitors combined. But what really makes Amazon Web Services tick? One of the reasons for its success is stability and what some have cited as staying power.

What is so clear at this juncture is that Web services are still in their early stages of adoption and Amazon’s dominance in that segment may change someday. Here are a few factors that have made it possible for Amazon to maintain dominance in the cloud market.

Simple cloud approach

Amazon.com, Inc. (NASDAQ:AMZN) has been able to widen and maintain its lead in the cloud computing market because of its simplified and easy to use AWS offerings. The company enables adopters to deploy AWS with little adjustment if at all.

Pragmatic approach

As an early cloud leader, Amazon is keen to remain the trend setter and that explains its pragmatic approach to cloud offerings. Through pragmatism, Amazon is also succeeding in retaining clients because of its above-standard services.

Robust back-end support

Perhaps more than any other cloud vendor, Amazon.com, Inc. (NASDAQ:AMZN) boasts robust back-end support for developers and enterprise clients. Superior end-to-end capabilities have enabled AWS to lock in users.

Stable vendor

Unlike Hewlett-Packard Company (NYSE:HPQ), which seems to keep changing its public cloud story, Amazon.com, Inc. (NASDAQ:AMZN) has shown time and again that it is here to stay. Beyond that, as much as the company is pragmatic in its cloud approach, users love the fact that it doesn’t constantly change its services in a way that could cause disruption.

Expanding cloud industry

In the early days, many companies resisted moving their systems to cloud and that decision was mostly based on compliance and security fears. But things have changed a lot as many companies see the benefits of cloud and more players enter cloud offerings with robust products. The industry is growing, but Amazon.com, Inc. (NASDAQ:AMZN) may also find itself battling more and competition.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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