Why Is AWS The BIGGEST Cloud Platform?

You've probably heard that AWS is the most dominant cloud provider, but have you ever wondered why that is? Today, we are diving into the world of cloud computing and exploring the powerhouse that is Amazon Web Services, better known as AWS.

I’m going to walk you through;

• the history of the cloud industry,
• Why AWS is the biggest cloud provider, and
• How competitors like Azure and Google cloud are coming for AWS' throne.

Why AWS is so dominant?

It is important to understand how the cloud industry came to be. The concept of cloud computing started in the mid-2000s, with the launch of AWS in 2006. The retail giant Amazon pioneered the idea of providing computing power, storage, networking and other services over the internet, revolutionising how businesses manage and deploy their IT infrastructure. 

Following AWS, other major players like Microsoft Azure and Google Cloud Platform entered the scene, contributing to the rapid growth of the cloud industry. This shift allowed organizations to scale their operations more efficiently.

Before the cloud, if a company wanted to get IT infrastructure, they would have to buy expensive servers then wait days if not weeks for the server to arrive, then they would have to rack and configure the servers. It was a very expensive and time consuming process. Now they can be up and running in a matter of minutes for only a fraction of the cost.

Today, cloud computing has become essential to various industries. For example, in the healthcare sector, cloud solutions enable secure and accessible storage of patient data. Businesses leverage cloud platforms for seamless collaboration and data analysis. And the gaming industry relies on the cloud for scalable infrastructure to support online multiplayer experiences.

From finance to education, cloud computing has transformed the way organizations operate, fostering innovation, flexibility, and accessibility to computing resources on a global scale.

The first reason AWS is dominant is because it developed what is called the first mover advantage.

This is an advantage gained by a company that first introduces a product or service to the market. The first-mover advantage helps a company to establish strong brand recognition and service loyalty before other competitors enter the market.

By being the first to market with a comprehensive cloud service offering, AWS not only set the standard but also played a defining role in establishing the very parameters of what cloud computing could achieve. This innovative leap not only positioned AWS as an industry leader but also significantly influenced the trajectory of cloud technology, creating a ripple effect felt across the entire IT landscape.

Another reason why AWS is dominant lies in its Extensive Service Portfolio. AWS offers a vast array of cloud services, each tailored to specific needs.

Amazon Elastic Compute Cloud or EC2 for example, is a powerful computing service that allows users to run virtual servers in the cloud. Or Amazon Simple Storage Service called S3, a robust storage service designed for scalable and secure object storage.

Also consider AWS Lambda, a serverless powerhouse that enables developers to run code without the need to provision or manage servers. This service was innovative when it was launched and has now been copied by competitors.

These are just glimpses of what AWS provides, from machine learning with Amazon SageMaker to managed databases through Amazon Relational Database Service or RDS. This diversity not only caters to the varied needs of businesses but also positions AWS as a one-stop-shop for a multitude of technological necessities.

To put the extensive number of services into context, AWS has over 200 fully-featured services, compared to Google Cloud Platform, called GCP, which only offers about 100.

Microsoft’s Azure platform offers about the same amount of services as AWS. However, Amazon still surpasses Microsoft in space storage, security and data privacy.

The final reason AWS dominates the cloud industry is due to its strong community support and extensive partner network, comprising consulting firms and technology providers.

The global developer community is a hub of shared knowledge and collaborative efforts, providing developers with resources for learning, troubleshooting, and innovation. AWS's commitment to enterprise support, including direct access to experts and responsive helpdesk services, ensures businesses receive the assistance they need promptly.

Educational resources, such as training programs and certifications, further empower users to maximize the potential of AWS services, fostering a culture of continuous learning and skill development.

A question you might be asking yourself at this point is:

“How does AWS compare to its competitors like Azure and GCP?”

“How does AWS compare to its competitors like Azure and GCP?”

Let’s break it down.

During the year 2019, Amazon had almost half of the total cloud market share with the runner up Microsoft only able to claim roughly 18% of market share, with all the other cloud providers like Alibaba, Google Cloud and others fighting for the rest.

The cloud industry has come a long way since 2019 and Microsoft Azure has really surged since then.

A statistical survey found that in 2023 the market share gap between AWS and Microsoft Azure has begun to close with AWS now having only 31% of total cloud market share and Microsoft Azure now claiming 24%.

Looking at market share does not give us the full picture because when you look beneath the surface, you discover that different cloud platforms cater to different market segments.

Microsoft Azure primarily caters to Enterprise customers who already use Microsoft products like Windows Active Directory, SQL Server, and Office 365. These are usually larger companies that have a long history running Windows workloads.

GCP, on the other hand, serves the startup community. They've created their platform to be much more user friendly for beginner entrepreneurs.

Alibaba cloud has continued to grow and gain global recognition. However, it still primarily focuses on customers based in China.

Whilst other cloud providers cater to specific user bases for example Azure focuses on Enterprise customers and GCP focuses on startups. AWS is accessible to all companies, regardless of size or budget and this is also another reason why it's so successful.

Now that we have explored some of the reasons why AWS is the biggest cloud provider, it’s time to look to the future.

As the landscape of cloud computing evolves, the future promises increased competition and innovation. While AWS currently holds a dominant position, competitors like Microsoft Azure are intensifying their efforts, working to close the gap. Azure's strategic integration with Microsoft products and services positions it as a formidable contender.

The rise of industry-specific cloud providers might also introduce new players and dynamics. However, AWS continues to assert its leadership by consistently innovating, expanding its global infrastructure, and skilfully addressing emerging challenges.

Now that you understand why AWS is so important, you might be wondering how to break into the cloud industry and what you need to do to get your first cloud job? If you want to know the answers, why not check out our courses at cloudcareermentor.com.