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What are some reasons why AWS needs to be disrupted?
- Closed system – everything inside it is magic and secret – what if they are sharing everything with the US govt?
- Monopolies are not good – no other vendor has their shit together as a result, its AWS and no one else in the leadership quadrant – its not AWS fault that all others are impotent companies, but we as an industry would be better off if there is worthy competition to AWS
- Pricing – AWS may be price gauging at the higher end of usage – yes, you can negotiate enterprise pricing etc, but many of the enterprise who start using AWS and increase its use across departments ( albeit fragmented) may be getting ripped off. AWS can do it because they are a monopoly and we don’t have an option.
How to Disrupt AWS
1. Established companies can not and will not be able to do it using current structure
2. Needs to form a dedicated BU with its own limited sales team or spin out a new company
3. Do not build from scratch – leverage something with momentum like OpenStack ( or others )
4. Pricing – offer compute and storage for free – make it free for development teams. This is where it helps to have deeper pockets in terms of funding.
5. Offer subscription service for support – nothing new here, but don’t optimize for revenue here – it is just a safety feeling for enterprises.
6. Do not match AWS features before you totally dominate the developer market.
7. Do not attack AWS – do not position yourself as being in a David vs. Goliath fight – position it as your developer outreach play, not Cloud play
8. Focus on developers, developers, developers
9. Be engineering driven- dominate OpenStack ( or whatever IAAS you pick as your base) submissions – in fact your company should consist of 75-80% developers
10. Be Cooler – be the one company that everyone likes when it comes to using Cloud in dev teams.
You will not make money in first 2 years, but once you dominate developer market, you can start adding value added features. You can’t put cart before the horse though, stay patient and stay disciplined.
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