Part 1 (of 2) looking at a recent example of how The Innovator’s Dilemma is playing out between the biggest clouds and the challenging upstarts.
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ONE COMPANY’S PROFIT IS ANOTHER COMPANY’S OPPORTUNITY
As AWS transitions from long-time leaders to a new leadership team, many industry upstarts are looking for ways to pick away at their most profitable (and customer-problematic) services, with new capabilities that may unlock completely new business models for companies.
CHEAPER NETWORKING, AGILE COMPUTING, and NEW COMPANY MODELS
- Disruption rarely happens because of better technology, but more often because of changing economics. (Gracely’s Theorem)
- AWS has long had very expensive networking costs, but it’s an area that really hasn’t faced competition.
- AWS offered enough services that their customers made the choice to deal with the network costs vs. having to build things themselves.
- Being the “everything” thing in computing always has its pros and cons. Computing has historically (last 40yrs) been moving to more distributed, modular architectures.
- We’ve seen a number of companies begin to offer edge or serverless types of offerings (GitHub, Netlify, Google Run, various CDN offerings,
- New ideas always emerge from difficult times (e.g. COVID pandemic) that we didn’t expect.
- Will this create a new round of acquisitions? Will it trigger price wars?
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