Reason behind the AWS domination in Cloud Market.

We are in the age of data and as per reports the 90% of total data available now is created in last 10 years. We are going to see more and more data in future. Also, data going to be most important thing in the world. So, having such a huge data we also need safe, easy and affordable way to store data. And, the cloud is solution of it. Cloud, aplace to keep data online, rather than a computer hard drive. It plays an important role in data ecosystems. The first who see future of cloud, intiate the services which can easily available to anyone in the world and make cloud as simple and accessible such that we are seeing cloud options in our smartphone also. Now, cloud is the necessary part of our life.

The cloud computing market is growing and offers incredible opportunities for companies wanting to establish themselves as leaders in cloud computing. According to Tech Crunch, the IDC expects the cloud market to more than double in three years, to $195 billion by 2020. AWS make intiative and makes cloud such a thing which we can see in now days. Along with AWS, we can see more players in cloud field now such as Google Cloud, IBM Cloud, Microsoft Azure, etc. One company that is leading the cloud market arena is Amazon Web Services (AWS). According to Canalys, AWS dominates the market with 33.8 percent global market share while its closest competitors—Microsoft, Google, and IBM—together account for 30.8 percent of the total market. Other smaller competitors include Oracle and Alibaba Cloud.ZDNet claims that AWS 2016 operating income was $3.11 billion on revenue of $12.22 billion and its annual operating profit was more than 25 percent.

Since AWS launched in 2006, it maintains its cloud market lead due to the aggressive investments it makes to expand its network. The more network expansion AWS experiences, the greater economies of scale that enable them to offer customers lower prices and full-bodied enterprise-scale features. And remember the virtuous cycle? The increasing number of clients that AWS gains allows more funds to be allocated to network expansion and results in price cuts. These price cuts translate to competitive service. Since 2006, AWS has progressed into a platform for databases, developer apps, tools, and analytics. According to MarketWatch, Amazon “recently announced plans to open an infrastructure region in Sweden in 2018, joining the 16 regional operations it currently maintains around the world, with another two slated to come online later this year.” AWS’ ability to innovate change goes beyond computing and storage. AWS has built a full-featured platform of services that has currently given the company a competitive edge as the leader of the cloud service.

However, companies such as Microsoft and Google are making gains in the market with artificial intelligence and machine learning platforms. For Amazon to remain as the frontrunner for cloud services, they must be fast and innovative when implementing platforms for artificial intelligence as they were in their early years. It is going to be interesting to see what Amazon will do to keep its competitive edge in the cloud market wars.