- Andy Jassy, head of Amazon Web Services, spoke at Wednesday's Goldman Sachs technology and internet conference about how AWS had a head start in the cloud industry.
- He was surprised how long it took other technology giants to create a cloud like Amazon.
- Microsoft and Google Cloud are currently competing with AWS in the cloud industry.
- Further information can be found on the Business Insider homepage.
Amazon Web Services started offering its cloud services in 2006, far ahead of the competition Microsoft and Google Cloud – and the lead has really brought the company forward, says Andy Jassy, CEO of AWS.
At the Goldman Sachs technology and internet conference in San Francisco on Wednesday, Jassy said that AWS's advantage over its competitors is that it has more functionality and a large partner network because of its lead.
"I think every major technology company has, or wants to build, some sort of what AWS has built in the cloud computing infrastructure space," said Jassy on stage.
Still, says Jassy, he never expected AWS to keep the market to himself for so long.
"Of the many big surprises, and there have been many big surprises, what is probably the biggest one for me is how long it took other big tech companies to build what looked like AWS tried," said Jassy.
"No compression algorithm for experience"
Before launching AWS, people thought Amazon was "just a retailer," said Jassy. For this reason, the company knew how important it was to be the first to sell cloud services and beat its rival in Seattle, Microsoft.
"We felt that if we didn't go to the market first it would be more difficult for us to be successful and Seattle is a pretty little town," said Jassy. "We know a lot of people – or on the other side of the lake, and we only tried to get to the start without anyone noticing. But we never thought we would have a six to seven year lead. "
According to Jassy, the maturity levels of the various cloud platforms that are currently on the market are currently in "very different places". In the early days, AWS had to take some big risks that still affect how the company makes decisions today, he says.
Jassy raised an internal motto that people at AWS use. This motto is "There is no compression algorithm for experience", which means that a company can only learn certain lessons if "you reach different levels of the curve and scale". He says AWS was able to learn these lessons earlier.
"What I always share when I get the chance to talk to customers about it is that there are actually only two major industries that are causing disruption," said Jassy. "One is the retail, the other the technological infrastructure, and both were fairly outdated models and customers weren't so happy with them. Anyone would reinvent them, and in those cases, too." turned out to be us. "
"Folklore or mythology"
Microsoft and Google Cloud are striving for an even larger share of the market when dealing with AWS.
According to analysts, a disadvantage of AWS compared to Microsoft and Google is that many companies fear the competition from Amazon.
For example, retailers see Amazon as their main competitor and Walmart chose Microsoft Azure.
Likewise, technology companies that build their business on open source services see Amazon as a threat. Redis Labs, Confluent, Cockroach Labs and Sentry have changed the licenses of how their software can be used when AWS sells their software in the cloud, or when it can. Similarly, MongoDB and Elastic AWS have taken competitive measures.
Nevertheless, Jassy rejected the idea that Amazon would prevent other companies from thriving as "folklore or mythology."
"I also think that sometimes people have this folklore or mythology when Amazon starts a business in a certain area it means that all other companies in those areas will not be as successful," said Jassy. "I just didn't see it … And because these segments are so big, they're not all winners. There is room for several companies to be successful."
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