The AWS ecosystem…barrier to innovation?

June 30, 2008 – 5:14 pm

Stacey Higginbotham from Gigacom wrote an interesing article about AWS. I found the article opened up an interesting discussion around the future of innovation at AWS.

Stacy says:

Werner Vogels, CTO at Amazon said that they built AWS for the company’s internal developers, and as such, didn’t feel the need to wrap services such as dashboards and testing offerings around it.

She goes on to say:

Companies such as RightScale, Hyperic and Soasta depend on both the success of AWS and its shortcomings — the solutions to which they propose to offer. So I sat down with the online retailer’s CTO, Werner Vogels, to see how Amazon viewed this ecosystem. My takeaway? I think most of the these firms are safe.

The ecosystem listed above is very big and leads to a large portion of the fees that Amazon raises for AWS. These solution providers help may large customers to use AWS in a very structured and safe way.

But, what happens if the thousands of small developers and start-up companies who use AWS want a service or feature that is already provided as a premium service by one of the companies listed above? Would Amazon release a service that might see one of the solution providers loose market share? Does Amazon need their custom more than that of the thousands of small developers?

My gut feeling is that AWS would develop services for their clients…and that this development roadmap is dependent upon who shouts loudest. Lets see how things work out over the next 12 moths.

More at:
http://gigaom.com/2008/06/27/hey-startups-amazon-gets-it

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