Feeds

Amazon Web Services opens can of whoop-AAS on as-a-service rivals

Bigger than IBM, Salesforce, Microsoft and Google together. But as for its profits...

Secure remote control for conventional and virtual desktops

Amazon Web Services is opening up an even bigger can of whoop-ass on all of the major Platform and Infrastructure-as-a-Service rivals as the global market passed the $2.5bn mark in Q3.

Stats from Synergy Research Group show that Jeff Bezos' boys now account for more than $700m of IaaS/ PaaS revenues – which is nearly $100m more than than salesforce.com, Microsoft, IBM and Google combined, who squeak in with just over $600m.

Total market expansion was 46 per cent but this was outpaced by AWS, which took more share after reporting sales up 55 per cent.

The "relative positioning" of the five firms has not really changed in multiple quarters, said John Dinsdale, MD at Synergy, though AWS continues to stretch its lead.

"While Amazon dwarfs all competition, the race is on to see if any of the big four followers can distance themselves from their peers," he said.

Related infrastructure service sectors all grew in the quarter but far more slowly than IaaS or PaaS, with managed hosting revenues up just three per cent, retail co-location up eight per cent and content delivery networks rising 14 per cent.

AWS is forecast to turn over $3.86bn this year, while its combined rivals are estimated to bring in $2.5bn in sales, said Canalys boss Steve Brazier, at its annual channel forum in Barcelona last month.

But the man pointed Amazon and other players in the cloudy space are losing money from their cloudy ventures.

"Amazon has proven that if it sells IaaS below cost it can get customers. It is losing money on this business and we think everyone in IaaS is losing money…. they can't get the return on capital employed," he said.

And despite "brilliant marketing" from salesforce.com, he said the Software-as-a-Service players were also losing money.

Cloud service provider Outsourcery, which itself has yet to turn a profit, yesterday told resellers they must start getting into the cloud. Like most CSPs, it set up a channel because it realised the limitations of selling direct.

Many resist the push into the cloud. It seems to be where the market is heading, but that shift looks likely to be far more gradual than the early hype suggested, as is often the way in the world of tech. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
You stupid BRICK! PCs running Avast AV can't handle Windows fixes
Fix issued, fingers pointed, forums in flames
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Microsoft: Your Linux Docker containers are now OURS to command
New tool lets admins wrangle Linux apps from Windows
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.