In The Cloud, It's Amazon Vs. The Rest

Dana Blankenhorn profile picture
Dana Blankenhorn
6.18K Followers

VMware (VMW) is just the latest company to join the OpenStack Foundation, an effort to build an open source cloud stack from parts first developed by NASA, then Rackspace (RAX), and now being implemented at the latter.

Over at Infoworld, however, Blue Mountain Labs founder David Linthicum offers a harsh investment truth for those interested in the cloud at Infoworld. None of this would have happened without the success of Amazon.com (NASDAQ:AMZN).

He sums up the case here:

The meteoric rise of Amazon Web Services proved the viability of the public cloud marketplace. But domination by a single cloud provider scares the hell out of many organizations looking to use cloud services.

In other words, Amazon's lead in the public cloud is as wide as that of Microsoft (MSFT) in PCs back in the 1990s, as wide as that of IBM (IBM) before the advent of the PC. Amazon.com scares the heck out of everyone.

Which is one reason why AMZN sports a PE north of 300, despite a wealth of naysayers, here at Seeking Alpha and elsewhere, who question the company's lack of profits and its ability to keep growing.

Just how wide the lead is can be seen from NASDAQ's (NDAQ) new financial analytics service, built on the Amazon cloud. FinQloud us a great way for Amazon to address this regulation-intense industry, through partnerships, and points the way toward other profitable verticals, notes GigaOm.

Cloud providers are trying to move beyond OpenStack, which offers Infrastructure as a Service or IaaS functionality, and build a Platform as a Service standard. Cloud Application Management for Platforms has come forward from, among others, Oracle (ORCL), Red Hat (RHT) and Rackspace, but it's no more a market reality yet than any other non-Amazon cloud specification.

Point being, if you want to explain Amazon's

This article was written by

Dana Blankenhorn profile picture
6.18K Followers
Dana Blankenhorn http://www.danablankenhorn.com has been a business journalist since 1978, and a futurist all his life.He warned about the coming Houston oil collapse in 1979. He began making a living on the Internet in 1985. He launched the first e-commerce daily for CMP in 1994, warned of the coming dot-bomb at a-clue.com in 1997 and began covering the Internet of Things in 2003.Along the way he's written for a host of newspapers, magazines, news services and Web sites. Most recently he was at TheStreet.com, covering technology and investments. He still has time for freelance assignments. He lives in Atlanta.

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