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7 Lingering Questions VMware Partners Have About AWS Outposts

‘AWS is the 800-pound gorilla in the public cloud market, but now AWS is fighting on foreign turf. Their biggest problem is there are channel partners today that have customer relationships.So AWS needs to provide products which they don't really have, services, which they don't really have, and then they have to replace a third-party player who is servicing the account today, in most cases, quite well. That is not going to be easy,’ says Martin Wolf, president of martinwolf M&A Advisors.

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AWS: The On-Premises Outposts Challenge

Amazon Web Services’ decision to move firmly into the on-premises server and storage business side by side with VMware with AWS Outposts means the company will have to overcome significant challenges—from service and support of on-premises equipment to how partners make money with AWS in a thin-margin server market.

Martin Wolf, president of martinwolf M&A Advisors of Walnut Creek, Calif., one of the top channel investment advisory deal-makers, calls the impending fight for the on-premises data center market a "battle royale" for the public cloud behemoth.

"AWS is the 800-pound gorilla in the public cloud market, but now AWS is fighting on foreign turf," said Wolf. "Their biggest problem is there are channel partners today that have customer relationships. So AWS needs to provide products, which they don't really have, services, which they don't really have, and then they have to replace a third-party player who is servicing the account today, in most cases, quite well. That is not going to be easy."

Wolf said on-premises infrastructure providers with deep channel relationships like Microsoft, Hewlett Packard Enterprise, Dell EMC, NetApp and Cisco Systems have "competitive advantages" in the data center and are not going to just "roll over."

AWS CEO Andy Jassy said the enterprise and public-sector adoption of cloud is still in the "early stages" in the U.S. "There are a lot of mainstream enterprises that are just now starting to plan their approach to the cloud in any kind of meaningful way," he said. "The first thing is they really want help doing an end-to-end portfolio analysis, looking at all of their workloads and which ones are easy to move to the cloud, which ones are really hard to move and which ones should go last."

VMware partners told CRN they see myriad challenges for AWS and have questions that the $27 billion public cloud behemoth must answer as it moves into the on-premises market.

 
 
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