How to disrupt AWS

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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.

Unrelated – take a minute to fill out IT Trends survey here: http://www.surveymonkey.com/s/Q8TYTC8

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One thought on “How to disrupt AWS

  1. Hello Commander,

    K-cloud promptly reporting back for duty, just after coming back from the battlefield (with some injured goats, blackened eyes and arrows in our arses on this very topic).

    1. All hail supreme commander ! Yes, it works wonderful in books but mucho, mucho harder in practice, you know….Oh, wait, you actually do 🙂

    4. Somebody needs some exorcism from the “Developers, developers, developers” hipsterism. To literally quote a CGO (Chief Goat Officer) from a recent convo “Developers ? They are people in Bangalore that build what we tell them to”. (Yes. _Literal_ quote).

    So yes, _bundle_ it at no extra cost with the other shit you do, but developers with the attention span of a Goldfish with Alzheimers are not yer target. It’s CGOs (and immediately below) that you FUD shitless with the spctre of the orange suit if they keep tolerate “the browny shade of IT”, like this: “Bring back the shit in house, or you go to the cooler”. To the ones that are toilet trained you give them a copy of Master Joe Weinman book and tell them mysteriously “Own the base, rent the spike”, and mutter something about the PaaSholes club…

    6 &7. You can’t anyway. Nowbody can fast-follow AWS at this point (Google not withstanding). The fuckers have too many years of head start, and the Doppler effect is firmly on “ultra-violet” in them accelerating away from the pack.

    8. No. That’s only the visionary / early adopter market, totalling 1/6 of Moore’s curve. The big money is with CGOs still on the other side of the chasm. And they, by & large, still on fence how to make sense of it all on _their_ goat farm. Moreover, developer-driven goat farms (or those progressive enough to realize they need to become — e.g. paypal, Warner, GE, etc. etc ) are already gone or going AWS, simply due to offer completeness. See also 6 & 7.

    9. Indeed…(Re-reads #1 & #2, curls in a corner and starts wailing. recovers, comes back, reads #10 and starts wailing _and_ drinking)

    With goat love & supreme wishes for c-cloud success,

    Azamat

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