Amazon Web Services SWOT


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SWOT Analysis for AWS

Graduate assignment for Communication Technology and International Economy course at

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  • Cloud computing distributes computing over a network as a practice. Applications run on a large number of computers at a time remotely versus just your own computer. Think of what you’re doing when you use Spotify, Dropbox, or other popular streaming and storage services. All this is happening across remote servers and computers across a network versus playing songs versus playing them on your local hard drive via iTunes. This has become a big deal in recent years because the cost of storage and computing has dropped dramatically, to tie in Moore’s Law.
  • Various cloud computing platforms and associated services offered by What most people would call website hosting. Amazon provides various cloud computing services to private companies and also services federal government contracts. Includes services to store data, store data and feed into website, secure payments, etc. that would be very difficult to build individually or to manage across different vendors.  Public versus Private cloud service.
  • Early entry into market in 2006 Large portfolio and infrastructure of dozens services Commands huge clients Zynga, Netflix, tmz, eventbrite, dropbox, reddit, airbnb, bms, loinsgate, cdc, nasajpl, adobe, spotify, cdc, capgemini, CIA, federal govt(CIA $600 million alone) Seattle Times Capacity AWS, has more than five times the combined capacity of its next 14 rivalsHigher investments on than next principle rival ($12 billion versus $1.4 billion) since 2005 (Business Insider)
  •  Weaknesses:Public Cloud Business Only  Outages (WSJ) Netflix  Complexity for Customers Price and Service Breadth Ppl don’t know how profitable it is  
  • Growing market for big business $300 billion dollar a year business ForrestorResearchdfGrowing suite of products that that complement it Continued investments Japan and more data centers  Spin off into own business File storage costs less in the cloud with lowering prices so businesses want to move to the cloud
  • Continuous downward pricing on hardwareServices that make it easier to not work a big player like amazon that offers “AWS but in a non-metered, non-rental-based package, can bring horizontal scalability and other cloud benefits to private clouds in a relatively painless manner, then we could see many companies decide that they’d rather take advantage of Moore’s Law and buy their own transistors instead of renting them from Amazon and others.” Challengers from Niche and LargeplayersMicrosoft and Rackspace are listed in the "visionaries" category, while telco-oriented providers Verizon Terremark and Savvis are in the "challengers" quadrant, along with Dimension Data. Joyent, Tier 3, Virtustream, Fujitsu, SoftLayer (now owned by IBM), GoGrid, HP and IBM are considered "niche players" by Gartner.Since 2005, Google has spent $20.9 billion on its infrastructure. Microsoft? J ust shy of $18 billion. Amazon? Roughly $12 billion.While more than Rackspace's $1.4 billion cumulative capital expenditures, Amazon's spending is a far cry from what both Google and Microsoft have spent Pricing Wars and Profits (Network World)  Prism anxiety movement toward private cloud  Shift toward NoSQLnonrelational databases (Barrons)  
  • Amazon Web Services SWOT

    1. 1. SWOT  Analysis   Date:  10/8/13   Prepared  by:  Bessie  Chu  
    2. 2. What is Cloud Computing? Cloud  computing  distributes  computing  over  a   network  as  a  practice.    Applications  run  on   a  large  number  of  computers  at  a   time  remotely  versus  just  your  machine.      
    3. 3. Business Model and Figures AWS  offers  cloud  computing  services,  what  most   people  would  understand  as  website  hosting.       Selling  point:  You  only  pay  as  much  as  you  need   the  services  and  Amazon  does  a  lot  of  the   heavy  lifting  so  you  can  work  on  your  core   business.   $3  billion  out  of  $61   billion  in  revenue   Current  capacity  is  five   ,mes  combined   capacity  of  next  14   rivals  
    4. 4. Strengths 1.  First  market   entry  in  2006   2.  Infrastructure   of  Dozens  of   Services     3.  Large     Entrenched  Client   Base     4.  Capacity  5X   Combined  that  of   14  Compe,tors   5.  Higher   Investment  than   Business  Rivals    
    5. 5. Weaknesses 1.  Public  Cloud  Business  Only   2.  Outages   3.  Complexity  for  Customers   4.  Price  and  Service  Breadth   5.  Profitability  QuesFons  
    6. 6. Opportunities 1.  Growing  market  for  big  business-­‐  cloud  computing  a   $300  billion  dollar  a  year  business   2.  File  storage  costs  less  in  the  cloud  with  lowering  prices   so  businesses  want  to  move  to  the  cloud     3.  Growing  suite  of  products  and  services  that  that   complement  AWS   4.  Possibility  of  spinning  off  into  own  business   5.  Continued  investments  and  expansions  
    7. 7. Threats 1.Hardware   Pricing   Price  Wars  on   Services   Enables   Competing   Services   2.   Competitors   Niche  Players   Google/ Microsoft/IBM   3.  Private   Cloud   NSA  Anxiety   and  Privacy   Customization   4.  Database   Trends   Trends  Toward   NoSQL/ Nonrelational   Databases  
    8. 8. References •­‐law-­‐cloud/   •­‐computing/public-­‐vs-­‐private-­‐cloud-­‐computing   •­‐are-­‐the-­‐top-­‐10-­‐Amazon-­‐AWS-­‐customers   •­‐EC2/What-­‐are-­‐the-­‐largest-­‐consumer-­‐sites-­‐that-­‐run-­‐on-­‐EC2   •­‐web-­‐services-­‐cloud-­‐is-­‐it-­‐good-­‐for-­‐anything   •­‐11-­‐12/jeff-­‐bezos-­‐risky-­‐bet   •­‐computing/public-­‐vs-­‐private-­‐cloud-­‐computing   •­‐raises-­‐2m-­‐to-­‐help-­‐aws-­‐customers-­‐analyze-­‐ resources-­‐costs-­‐and-­‐security/   •­‐aws-­‐now-­‐5-­‐times-­‐the-­‐size-­‐of-­‐other-­‐cloud-­‐vendors-­‐ combined   •­‐it/   •­‐aws-­‐market-­‐share-­‐and-­‐revenues-­‐2013-­‐8   •­‐web-­‐services-­‐threatens-­‐almost-­‐all-­‐ it-­‐says-­‐morgan-­‐stanley/   •­‐amazon-­‐cloud-­‐272444.html   •