FROM THE NEWSROOM: There has been a dictum prevailing in the tech industry for years that “no one ever got fired for buying IBM”. This statement proves to be a testament to how Big Blue ruled the computing services industry for decades.
But the above mentioned maxim appears to be no longer holding validity as there is a new challenger entered in the market, i.e. Amazon Inc. The e-commerce retail giant has been emerging as a strong contender in the thriving cloud computing business with now having America’s top spy agency in its clientele.
Amazon Web Services (AWS) had been restricted for years from offering online computer services to small businesses and new startups. Despite of that, the most recent achievement of Amazon Inc. is the beating out of IBM this year and snagging a $600 million cloud computing contract with the Central Intelligence Agency, CIA.
Although IBM has filed a protest against this contract but this major happening has highlighted the enthralling evolution of Amazon as a competitive computing service provider to small and large-sized firms that once used to be only an online retailer. It has also helped greatly in boosting the Amazon shares and taking them to a new record level that exceeds the second-quarter results of the company. The official financial figures have not been disclosed by the company but according to Wall Street, the financial returns are growing faster than its retail business and is turning into a more profitable venture.
According to an analyst at JMP Securities, Ron Josey,
.AWS is one of the main spokes of the bull case on Amazon shares. Software and IT investors are aware of and are trying to size AWS, and what the impact could be on their sector..
IBM is deep-rooted in businesses and firms all over the world and is likely to be the same for upcoming years as it holds massive research budgets. But still some other players along with IBM are keeping an eye on the growing success of AWS with the rise of Cloud computing.
Amazon Web Services deals majorly in public cloud computing which it excelled in 2006. Public cloud computing allows companies to rent computing power, storage spaces and other computing services from the data centers that are shared with multiple customers. It proves to be more flexible and less expensive than maintaining and managing their own computing system.
Amazon has successfully pulled in some major giant corporations to its clientele. These include Pfizer, NASA, Samsung and the Public Broadcasting Service.
This surprising and unanticipated threat in the form of AWS success is making waves throughout the industry. The falling sales of Oracle for consecutive two quarters made it to announce partnerships with Salesforce.com and Microsoft, who were once used to be the rivals of Oracle. This step was viewed as a response to the massive expansion of AWS.
Colby Synesael, an analyst at Cowen & Co. said,
.AWS is having a really meaningful impact on IT and the big incumbent companies like IBM are reacting to that now..
AWS has shaken the entire computing industry with its surprising enormous growth. Starting up with an online retail and now the taking on the cloud industry, AWS has played its cards really well. We anticipate some more exciting news to come from the cloud world in near future. So, stay tuned with Cloudreviews to get the instant updates.