The cloud market might still be pretty fresh, but Amazon has already established itself as the undisputed leader, and that doesn’t look like it’s going to change anytime soon. However, even with Amazon dominating the market and Google and Microsoft trailing not too far behind, HP’s cloud chief says that he’s still confident that the company will be able to compete in the market.
While the cloud market is still relatively new, all signs suggest that Amazon Web Services (AWS) is going to continue running away with the market. Not only does AWS dominate market share, but it also stands to continue to gain from “relentless economies of scale,” as Redmonk analyst Stephen O’Grady terms it: “The economies of scale that larger players can bring to bear on the markets they target are, quite frankly, daunting. Their variable costs decrease due to their ability to purchase in larger quantities; their fixed costs are amortized over a higher volume customer base; their relative efficiency can increase as scale drives automation and improved processes; their ability to attract and retain talent increases in proportion to the difficulty of the technical challenges imposed; and so on.”
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