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Amazon Web Services SWOT & Competitor Analysis

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Amazon Web Services SWOT & Competitor Analysis for USC course:

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Amazon Web Services SWOT & Competitor Analysis

  1. 1. Date:  10/30/13   Prepared  by:  Bessie  Chu  
  2. 2. Agenda •  Introduction  of  Cloud  Computing   •  Amazon  Web  Services  Business  Model   •  AWS  SWOT  Analysis   •  Competitor  Landscape   •  Competitor  Analysis  using  SWOT  Analysis   –  Rackspace   –  Google  Compute  Engine   –  Microsoft  Azure   •  Summary    
  3. 3. 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.      
  4. 4. 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  
  5. 5. 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    
  6. 6. Weaknesses 1.  Public  Cloud  Business  Only   2.  Outages   3.  Complexity  for  Customers   4.  Price  and  Service  Breadth   5.  Profitability  QuesFons  
  7. 7. 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  
  8. 8. 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  
  9. 9. Cloud  Infrastructure     Investment  Landscape   Source:  Gartner  Research       hJp://readwrite.com/2013/08/21/gartner-­‐aws-­‐now-­‐5-­‐Fmes-­‐the-­‐size-­‐of-­‐other-­‐cloud-­‐vendors-­‐combined  
  10. 10. Most  Similar  to  Amazon  Web  Services  Product  Mix  and  Target  Clients   Rackspace  Market   Cap:  7.36  Billion     1.3  Billion  in   Revenue   Estimated  900+   Employees   Amazon  Market   Cap:  $164.04   Billion     AWS  3  Billion  in   Revenue   Estimated  2000+   AWS  Employees    
  11. 11. Rackspace’s  Current  Position   Strengths   1.  Hybrid  Cloud  and  Private   Cloud  Businesses   2.  Non-­‐Proprietary  Cloud   Open  Stack     3.  CustomizaFon  and   Customer  Service   Weaknesses   1.  It  has  to  make  money     AWS/Amazon  doesn’t   2.  It’s  not  Amazon  at   Enterprise  level   3.  Outages,  Security,  and   Infrastructure   Amazon  should  diversify  from  Public  Cloud,  continue  to  strengthen   infrastructure,  and  support  periphery  vendors  that  help  businesses.  
  12. 12. Rackspace  Prospects   Trend  to  Private   Cloud   Appeal  of   OpenCloud   Huge  Market  ($300   billion  dollar   industry)   Only  business  is   Cloud  Computing,   chance  to  be  agile   Opportunities   Amazon  Price   Wars   Amazon’s   Unrelenting   Advance  and   Investments   Too  Much  Trying   to  Copy  AWS   Google  and   Microsoft  could   make  move   Threats   AWS  should  pay  attention  to  trends  and  continue  to  pummel  with  resources  
  13. 13. Looming  Dark  Horses   *Both  do  not  yet  act  nor  are  perceived   as  full  service  cloud  vendors  in  the  way   and  at  the  scale  AWS  or  Rackspace  does   in  the  industry    
  14. 14. Google  Compute  Engine   AWS  Must  Solidify  Market  Position  as  Full  Service  Cloud  Service     and  Deploy  Knowledge  from  Previous  Analytics  and  Success  Stories.       Strengths:   1.  Google  Network   2.  Instance  Flexibility   3.  Incremental  Billing   Weaknesses:   1.    Google  Perceived  as  Tone-­‐deaf   to  Enterprise  Needs   2.  Features  and  Customer  Service   Ethos   OpportuniFes     1.    Google’s  ExperFse  in  Other   Areas   2.    Space  for  DifferenFaFon   Threats   1.  Long  Way  to  Catch  up     2.  Dismissed  as  Too  LiJle  Too  Late   • Just  announced  this  year.   • Positioning  itself  as  a  full-­‐service     Public  Cloud  Competitor   Google  Market  Cap:   $339.17  Billion     Cloud  Revenue  $200   Million  in  Q2   Amazon  Stock  Price:   $332.54   AWS  3  Billion  in   Revenue  
  15. 15. Windows  Azure     Strengths:   1.  IntegraFon  with  Back  Office  IT   ApplicaFons   2.  Legacy  Provider  with  .NET  and  Other   Language  Support   Weakness:   1.    Amazon  Had  Three  Year  Head  Start   2.    Brand  Weakness-­‐  Not  Seen  as  an                InnovaFve  Player   Opportuni,es:   1.    One  Step  Expansion  from  Enterprise   Space     2.    Appear  to  be  also  Stepping  into  Hybrid   Cloud  Business    Threats:   1.    Perceived  as  a  Lock-­‐In  Trap   2.    Opacity  to  Engineers  Who  Don’t  use   Microsoc  Heavy  Languages   3.    Can  it  Respond  to  Price  War?   MicrosoX   Market  Cap:   $296.94   Billion     $1  billion  in   Cloud   Revenue,   including   Azure   Amazon   Market  Cap:   $164.04   Billion     AWS  3   Billion  in   Revenue   AWS  Should  Partner  with  Services  or  Expand  Infrastructure  to  Integrate   Better  with  Microsoft  Enterprise  Systems  
  16. 16. Amazon  Must  Not  Grow  Complacent     Pursue  Market  Trends  Relentlessly   Price  War  Competitors  to  Knees   Improve  Coverage  and  Security     Support  Complementary  Vendors      
  17. 17. Summary   •  First  large  entrant  into  cloud  compuFng  business   •  Advantages  lie  in  scale,  infrastructure,  and  the  vast   resources  of  Amazon   •  Disadvantages  include  changing  industry  trends  and   new  large  players,  but  Amazon  appears  to  be  paying   aJenFon   •  CompeFtors  are  a  threat  because  of  parFcular   aJributes,  such  as  ease  of  integraFon,  associated  with   each  brand     –  Rackspace   –  Google  Compute  Engine   –  Microsoc  Azure   •  Biggest  threat  is  complacency  
  18. 18. Questions?  

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