AWS having fresh connectivity issues; high praise from Gartner

Amazon Web Services' (AMZN -0.3%) pivotal U.S.-East data center is having network connectivity issues that are impacting major clients such as Salesforce's Heroku unit and software project hosting platform GitHub.

Fast-growing AWS has periodically seen outages and connectivity issues. The last major disruption was on Aug. 26.

Gartner recently estimated AWS possesses 5x the utilized compute capacity of all other cloud infrastructure (IaaS) providers combined, while effectively declaring the platform in a league of its own. "[AWS] is a thought leader; it is extraordinarily innovative, exceptionally agile and very responsive to the market. It has the richest IaaS product portfolio..."

Analyst Lydia Leong: "Many Gartner clients now actually have multiple incumbent providers (the most common combination is AWS and [Verizon's] Terremark), but nearly all such customers tell us that the balance of new projects are going to AWS, not the other providers."

Analysts think AWS is now on a $3B+/year run rate, after generating ~$2B in sales last year.

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Comments (2)
  • wigit5
    , contributor
    Comments (4365) | Send Message
    Surprising given its reliability issues
    13 Sep 2013, 12:58 PM Reply Like
  • SA_Member_4824301
    , contributor
    Comments (2599) | Send Message
    It's C-H-E-A-P.


    But it's not sticky. So when more niche-specific Cloud hosting companies expand more capacity (and prices of this infrastructure get cheaper and/or better over time), then clients/customers can easily make the move from their current Cloud to another better Cloud offering.


    So AWS has no real advantage here, other than early lion's share/marketshare, not high-margin profitability.
    1 Nov 2013, 01:40 AM Reply Like
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