GlobalData Plc
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In an effort to maintain its leadership position in the cloud market, Amazon announced new complex services at the annual AWS Summit in San Francisco earlier this month. But the cloud giant’s messaging fell short of mapping to actual costs, causing confusion among some of the developers and systems admins attending the technology conference, says leading data and analytics company GlobalData.

At the AWS Summit, Amazon announced innovative high-value services, including analytics, automation, and next-generation app development architectures.

During some conference sessions, users quizzed panel members about how much cloud migration projects would cost, the sort of internal expertise required, and whether traditional systems admins are up to the task of implementing a new DevOps model. Speakers admitted that cloud migration projects were extremely complex, with one Amazon customer presenter suggesting that enterprise systems admins needed to basically transform into Python developers.

Charlotte Dunlap, Technology Analyst at GlobalData, says: “Amazon has not gone far enough to acknowledge enterprises’ need to make a gradual move from on-premises, data center-based IT operations to cloud-based operations.  And the company’s insistence that customers go ‘all-in’ could hinder progress by giving it a reputation for being too cloud-centric with a lift and shift mentality.”

Amazon’s rivals, including Microsoft, IBM and Oracle, are able to resonate with customers’ operations teams looking to make gradual moves to the cloud, initially through private/hybrid cloud scenarios.

Dunlap concludes: “Amazon is already at a disadvantage compared to traditional software providers with their mature professional services organizations. The company relies heavily on partners to provide customers with support for digital transformation projects that require on-premises data center support and verticalized, specific use case solutions.

“Going forward, Amazon’s ability to maintain dominance in cloud market share will not be solely based on offering a low-cost pricing model. Amazon needs to lower the barriers to cloud adoption by pre-building as much functionality as it can for specific use cases to the benefit of both customers and channel partners. Otherwise it will lose out to closest cloud rivals Google and Microsoft.”

Analysts available for comment. Please contact the GlobalData Press Office at pr@globaldata.com.

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