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The public sector ‘a special market’ for Amazon, say analysts
While technology companies compete for sectors within the emerging cloud marketplace, Amazon Web Services Inc. hopes to dominate the field in the public sector — which includes government, education in domestic and international regions. AWS is actively disrupting the public sector in a manner similar to its rapid rise in in the commercial market, in that it’s leaving legacy players to figure out how to compete.
“Amazon is running the table,” said John Furrier (@furrier, pictured, right), co-host of theCUBE, SiliconANGLE Media’s mobile livestreaming studio. “We’ll predict it here on theCUBE. … This is going to be a special market for Amazon going forward.”
Furrier spoke with co-hosts Stu Miniman (@stu, pictured, middle) and Dave Vellante (@dvellante, pictured, left) during the AWS Public Sector Summit in Washington, D.C. They discussed a summary of AWS’ success in the public sector.
Amazon continues to ‘crush it’ in public cloud sector
Right now, Amazon has about five to 10 years of an advantage over legacy suppliers when it comes to cloud, according to Vellante. The company is tracking at $22 billion this year, is growing at 15 percent, and has an operating income of 26 percent he added. To give context, IBM has an operating income of nine percent, and VMware’s is 19 percent.
“Amazon is crushing it in terms of the economic model,” Vellante said.
Amazon has created AWS GovCloud, which has a Secret Region and Top-Secret Region, something no other company can offer at this point, according to Miniman. “Amazon is hitting it hard and definitely winning in this space,” he said.
TheCUBE co-hosts gave several highlights into AWS’ successful break into cloud services, including the watershed moment when the CIA struck a deal with Amazon for cloud. “I don’t think you can talk about cloud and federal without talking about that milestone CIA deal,” Vellante said. “That really was a watershed moment. That was a wake-up call to the old guard.”
Much of AWS’ public cloud success is attributed to Teresa Carlson, vice president of the worldwide public sector at Amazon. “[She’s] hard charging; she knows the government game; she’s super nice, but she can fight,” Furrier stated. “She listens to the customers, and she takes advantage of that Amazon vibe.”
With this kind of leadership, customers are taking note of AWS’ innovative nature. “That’s what attracting the customers: Financially, operationally, culturally it’s disruptive,” Furrier concluded.
Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s coverage of the AWS Public Sector Summit.
Photo: SiliconANGLE
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