Amazon Says Cloud Business Still Going Strong, Plans To Continue Enterprise Push

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As a systems integrator, reseller and a customer, Digitaria has three account managers at all times working with Amazon. And the online retail giant has been a supportive cloud partner, RisonChu said, willing to fly specialists around the country when Digitaria was pitching potential customers harboring concerns about security that needed to be addressed by the vendor.

“When we first started with Amazon they didn’t have a lot of that, but now as they expand we’re able to take advantage of that and win bigger deals,” RisonChu told CRN.

For that reason, any move toward an expansion of professional support staff is good news for his business.

“Amazon’s investing in us just as we are investing in Amazon,” RisonChu said.

Digitaria doesn’t upsell, instead earning its revenue through the managed services it offers customers. So anytime AWS lowers prices, it makes Digitaria more competitive in its market, RisonChu said.

Mirandi told CRN these kinds of continued investments in sales and services teams, as well as hybrid cloud capabilities, will allow Amazon to maintain its leadership position in the cloud market.

The straight reseller market will most likely shrink, Mirandi told CRN, with the business evolving more into an ecosystem where partners add professional services and real value around the product.

Amazon, which historically had a self-service, online model, now has a sales team to cater to enterprise needs. It also has a professional services team which functions as “a white-glove consulting firm to AWS’ largest enterprise customers," Mirandi said.

Amazon is also expanding its portfolio of cloud services, including analytics, security, IAM, and cloud monitoring to address a broad set of needs, and is committing itself to hybrid IT investments, enabling customers to more easily connect their data centers to the AWS cloud, according to Mirandi.

One threat to the company as it expands into enterprise is a challenge from broader infrastructure vendors like IBM and HP, which have the potential to overshadow Amazon in the eyes of customers with their more-branded IT environment.

Those companies are building up their own cloud portfolios and have the ability to impede Amazon’s market penetration, especially with customers who prefer to work with only one vendor.

“At this point, Amazon is ahead of the market. But that’s one thing for them to think about,” Mirandi said.

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