There is no question about it – Amazon are one of the most impressive companies when it comes to the technology sector.
They have already achieved an amazing feat taking the technology industry by storm and have produced one of the most reliable and talked about cloud computing platforms to date.
Not only is their platform impressive it is a real enabler for companies of all sizes who are interested in moving their services to the cloud. It is no doubt responsible also for countless tech start-ups, mainly because their platform is so flexible and comes with almost no barriers to entry.
Talk to anyone in the world of finance and they will probably tell you that Amazon is an amazing company, but they will also tell you that shares in Amazon are expensive and because of this fact its probably not as attractive to an investor unless they want to get in for the long term.
However, we say watch this space. If you think Amazon are big now, you haven’t seen anything yet because they almost certainly have their biggest feat yet to come. To understand this way of thinking it is important to understand where Amazon are placed and who their target audience are.
Amazon sit alongside Microsoft when it comes to cloud computing – Microsoft have their Azure platform and Amazon have AWS (Amazon Web Services). However, Microsoft have always been focused more on enterprise customers – companies that have a large on-site presence and who are slowly migrating to the cloud.
Whilst Amazon have typically focused on smaller businesses – modern tech companies, start-ups and anyone else who isn’t already tied to a physical environment. The reason for this is simple – Amazon AWS is much more suited to companies building infrastructure from scratch and not suited to companies who have a lot of on-site hardware already.
Amazon to introduce on-premise cloud solutions
This is where things are going to change. Recently Amazon announced that they are developing an on-premise cloud computing solution. This means they are going to introduce products and services that can work along-side existing in-house IT systems. In simple terms this means that Amazon can compete directly with Microsoft. It also means that they are opening up their target market to include the entire scope of enterprise IT environments.
This could potentially be a massive leap forward for Amazon and will give them a chance to really make their mark on the technology sector. If you look at how large a market share Microsoft still have within the tech sector its easy to see how far forward Amazon could move, were they able to steal some of that market share.
So, keep an eye on the share price for Amazon – as they develop and then launch their on-premise cloud solution you may well see the price leap forward in the same way as their cloud offerings are also leaping forward. Watch this space.