{"id":660969,"date":"2013-05-29T22:57:11","date_gmt":"2013-05-30T02:57:11","guid":{"rendered":"http:\/\/gigaom.com\/?p=650358"},"modified":"2013-05-29T22:57:11","modified_gmt":"2013-05-30T02:57:11","slug":"killer-cloud-report-says-amazon-web-services-threatens-all-it-incumbents","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/660969","title":{"rendered":"Killer cloud: report says Amazon Web Services threatens all IT incumbents"},"content":{"rendered":"<p>Amazon Web Services faces growing competition from a dozen or more legacy name-brand IT giants. But instead of taking a hit, it poses a bigger-than-ever threat to the those vendors \u2014 all of which are building their own competitive clouds, according to new Morgan Stanley research. Oh, and the researchers project that AWS will hit $24 billion in revenue by 2022.\u00a0Amazon doesn\u2019t break out AWS revenue, but most pundits figure i<a href=\"http:\/\/gigaom.com\/2012\/04\/27\/how-big-is-amazon-web-services-bigger-than-a-billion\/\">t passed the $2 billion-a-year mark about a year ago.<\/a><\/p>\n<p><a href=\"http:\/\/gigaom.com\/2012\/10\/18\/what-unbelievable-new-services-does-amazon-have-on-tap\/awslogojpeg-2\/\" rel=\"attachment wp-att-574886\"><img loading=\"lazy\" decoding=\"async\" alt=\"awslogojpeg\" src=\"http:\/\/gigaom2.files.wordpress.com\/2012\/10\/awslogojpeg.jpg?w=300&#038;h=143\" width=\"300\" height=\"143\" class=\"alignleft size-medium wp-image-574886\"><\/a><\/p>\n<p>The fact that <a href=\"http:\/\/gigaom.com\/2012\/03\/14\/amazon-is-no-1-whos-next-in-cloud-computing\/\">AWS has a huge lead in cloud <\/a>over the rest of the world is not news to anyone who\u2019s been watching, but these projections \u00a0could be a wake up call to investors who think tech incumbents \u2014 companies like IBM, Microsoft, HP, <a href=\"http:\/\/gigaom.com\/2013\/03\/13\/vmwares-hybrid-vcloud-takes-on-amazon-kinda\/\">VMware<\/a>, Red Hat as well as every telco and hosting provider \u2014 can challenge Amazon in cloud computing.<\/p>\n<p>\u201cApplying retail economics to the delivery of technology services well positions Amazon Web Services [to be] a Top 5 vendor within the $152 TAM [total addressable market,] \u201d according to Morgan Stanley analysts Scott Devitt, Keith Weiss and team.<\/p>\n<h2 id=\"nobodys-immune\">Nobody\u2019s immune<\/h2>\n<p>The move to cloud computing means fewer companies will buy huge numbers of servers and storage arrays for their own use. Over the next 5 years, Morgan Stanley\u2019s expects that 3 percent to 17 percent of current spending could be sucked up by cloud-based IT service providers.\u00a0AWS represents a key risk for infrastructure vendors EMC, Brocade, NetApp, VMware and\u00a0Qlogic, in particular, according to the report.<\/p>\n<p>Other key takeaways:<\/p>\n<ul>\n<li>\u201cWe expect on-premise server growth to remain negative long-term on the back of smaller footprints post the adoption of server virtualization combined with new workloads moving to the cloud. Partially offsetting the decline is 20% growth in servers shipped to cloud providers, though some of the demand is fulfilled by whitebox makers like Quanta and Wistron.<\/li>\n<li>Storage market at risk of decelerating growth that isn\u2019t fully baked into expectations (unlike servers which already declined in 2012). We expect 0-5% storage revenue growth going forward, down from 5-10% historically. EMC and NetApp likely gain share from server vendors, like IBM. We downgrade BRCD to UW, given over 30% of revenue derived from server OEMs.\u201d<\/li>\n<\/ul>\n<h2 id=\"aws-as-enterprise-software-pow\">AWS as enterprise software power<\/h2>\n<p>And then there is enterprise software where Amazon threatens VMware and Red Hat in the virtualization market. And, as we\u2019ve reported, Amazon is pushing hard for enterprise workloads with its \u00a0<a href=\"http:\/\/gigaom.com\/2012\/01\/18\/amazon-launches-home-grown-nosql-database\/\">DynamoDB<\/a> NoSQL database and <a href=\"http:\/\/gigaom.com\/2012\/11\/28\/amazons-new-data-warehousing-service-takes-aim-at-old-guard-it-giants\/\">RedShift<\/a>\u00a0data warehousing. Those AWS efforts represent a long-term threat to Oracle, SAP and Microsoft.\u00a0In content delivery, where Amazon\u2019s CloudFront is a factor, Akamai faces a long-term threat.<\/p>\n<p>Morgan Stanley isn\u2019t the first analyst firm to up the ante on AWS expectations. In January\u00a0<a href=\"http:\/\/www.macquarie.com\/mgl\/com\/us\/local-activities\/research\">Macquarie Capital<\/a>\u00a0projected that <a href=\"http:\/\/gigaom.com\/2013\/01\/07\/amazons-cloud-is-bigger-more-profitable-than-we-think-report-says\/\">AWS would account for $38 billion of an overall $71 billion cloud services market<\/a> by 2015. If you don\u2019t like Morgan Stanley\u2019s take on AWS, hold on, there are bound to be others.<\/p>\n<p>The growth of Amazon\u2019s public cloud infrastructure and its push beyond startups into the enterprise, will doubtless come up at<a href=\"http:\/\/event.gigaom.com\/structure\/?utm_source=cloud&amp;utm_medium=editorial&amp;utm_campaign=intext&amp;utm_term=650358+killer-cloud-report-says-amazon-web-services-threatens-all-it-incumbents&amp;utm_content=gigabarb\"> GigaOM\u2019s Structure event <\/a>where Amazon CTO Werner Vogels will speak.<\/p>\n<p>  <img loading=\"lazy\" decoding=\"async\" alt=\"\" border=\"0\" src=\"http:\/\/stats.wordpress.com\/b.gif?host=gigaom.com&#038;blog=14960843&#038;%23038;post=650358&#038;%23038;subd=gigaom2&#038;%23038;ref=&#038;%23038;feed=1\" width=\"1\" height=\"1\" \/><\/p>\n<p><a href=\"http:\/\/pubads.g.doubleclick.net\/gampad\/jump?iu=\/1008864\/GigaOM_RSS_300x250&#038;sz=300x250&#038;%23038;c=663198\"><img decoding=\"async\" src=\"http:\/\/pubads.g.doubleclick.net\/gampad\/ad?iu=\/1008864\/GigaOM_RSS_300x250&#038;sz=300x250&#038;%23038;c=663198\" \/><\/a><\/p>\n<p><strong>Related research and analysis from GigaOM Pro:<\/strong><br \/>Subscriber content. <a href=\"http:\/\/pro.gigaom.com\/?utm_source=cloud&#038;utm_medium=editorial&#038;utm_campaign=auto3&#038;utm_term=650358+killer-cloud-report-says-amazon-web-services-threatens-all-it-incumbents&#038;utm_content=gigabarb\">Sign up for a free trial<\/a>.<\/p>\n<ul>\n<li><a href=\"http:\/\/pro.gigaom.com\/2012\/01\/how-amazons-dynamodb-is-rattling-the-big-data-and-cloud-markets\/?utm_source=cloud&#038;utm_medium=editorial&#038;utm_campaign=auto3&#038;utm_term=650358+killer-cloud-report-says-amazon-web-services-threatens-all-it-incumbents&#038;utm_content=gigabarb\">Amazon\u2019s DynamoDB: rattling the cloud market<\/a><\/li>\n<li><a href=\"http:\/\/pro.gigaom.com\/2012\/06\/cloud-computing-infrastructure-2012-and-beyond\/?utm_source=cloud&#038;utm_medium=editorial&#038;utm_campaign=auto3&#038;utm_term=650358+killer-cloud-report-says-amazon-web-services-threatens-all-it-incumbents&#038;utm_content=gigabarb\">Cloud computing infrastructure: 2012 and beyond<\/a><\/li>\n<li><a href=\"http:\/\/pro.gigaom.com\/2012\/04\/infrastructure-q1-cloud-and-big-data-woo-the-enterprise\/?utm_source=cloud&#038;utm_medium=editorial&#038;utm_campaign=auto3&#038;utm_term=650358+killer-cloud-report-says-amazon-web-services-threatens-all-it-incumbents&#038;utm_content=gigabarb\">Infrastructure Q1: Cloud and big data woo enterprises<\/a><\/li>\n<\/ul>\n<div class=\"feedflare\">\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/OmMalik?a=v6Nh0B1GbUA:KYcfyNz91bk:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/OmMalik?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/OmMalik\/~4\/v6Nh0B1GbUA\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon Web Services faces growing competition from a dozen or more legacy name-brand IT giants. But instead of taking a hit, it poses a bigger-than-ever threat to the those vendors \u2014 all of which are building their own competitive clouds, according to new Morgan Stanley research. Oh, and the researchers project that AWS will hit [&hellip;]<\/p>\n","protected":false},"author":7419,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-660969","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/660969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/7419"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=660969"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/660969\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=660969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=660969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=660969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}