The Cloud War Rages On: How Amazon is Changing the Industry
Amazon’s successful expansion into the traditional enterprise market has triggered a massive response from the data center vendors that once monopolized this space. Wikibon co-founder and chief analyst Dave Vellante discussed how this competition is driving new trends on yesterday’s NewsDesk segment with Kristin Feledy (full video below).
Vellante starts by saying that Amazon has come a long way since it launched AWS in 2006 -Wikibon expects that the company’s public cloud business will generate a record $3 billion in revenue by the end of this year. As a result of this growth, Amazon is now facing competition on three major fronts: Google and Microsoft are matching AWS’ scale, traditional vendors such as HP and VMware are adopting new technologies, and rivaling cloud providers are getting more aggressive.
The traditional vendor camp stands out among the rest because for example, VMware, which sells its own proprietary virtualization software has become a standard in the marketplace. As well companies like HP, IBM and even VMware/EMC itself, are putting their weight behind OpenStack: the platform that Vellante calls “open-source AWS”.
OpenStack picked up a tremendous amount of momentum in recent years thanks to initial support from a strong ecosystem of vendors including Rackspace, HP and Dell. The platform’s popularity in the developer community is also proving to be an invaluable growth catalyst.
“With the whole Big Data movement, there’s a lot of open-source momentum behind it. I think that open-source software is really changing the game, and that anything that is open-source that has a lot of momentum behind it is going to attract developers. That is the key: there is a need for a platform that is the open-source or open-source-like platform on which big data applications can be developed and run.”
Vellante predicts that the open-source market and solutions built on open source will see a tremendous amount of growth as VMware, EMC, IBM, HP and their partners expand their presence in this space. He also believes that the market will start consolidating once the bigger fish become interested the smaller firms that are effectively competing with Amazon.
See Vellante’s full analysis below:
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