AWS continues to dominate, but is that good for you? (with video)

At AWS re:Invent 2017, AWS continued to show the domination it has over the public cloud market. During Andy Jassy's keynote, he talked about AWS now having an $18 billion run rate with 42% growth. That's impressive in both the size and the continued growth at that size, which should be a bone chilling statistic for competitors. It extends beyond financials, with AWS showing share numbers to be over 44% of the market and more than the next 12 competitors combined.

But the domination also goes well beyond the financials and share numbers. AWS showed off its customer logo slide, as all companies do at their shows, but this year, the slide was so large, I had to use the panorama mode on my phone to capture it.

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So why should we care if AWS continues to lead the public cloud market? The question is whether this position is good for you, the customer. AWS's product portfolio continues to grow, with dozens of new and updated services announced just at this event. The visualization of the current portfolio is impressive, as can bee seen in the picture below.

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But is it too much? Another colleague and I were discussing this and we noted that this platform makes the Microsoft-Intel domination of PCs from the 90s pale in comparison. Just like that case, you as the customer are deriving incredible value from AWS, both in the refinement of the services it has and the continued pace of innovation. And unlike the Microsoft case, there are still viable competitors helping keep AWS honest.

The real question is whether you should invest so heavily in AWS. To take full advantage of its platform, you will invariably have to leverage AWS specific services, or even AWS's version of common products, including its new Amazon container services, Fargate infrastructure free container platform, or upgraded version of Lambda and machine learning. When you build, target, and optimize applications for AWS, you are effectively locking that application into AWS.

With over two-thirds of companies being multi-cloud, the potential lock-in associated with these new AWS services is real. What I expect to play out over the next several years is companies deciding if they are multi-cloud to potentially move applications between public cloud, or multi-cloud to build applications for public clouds. Depending on how your company sees multi-cloud, these moves by AWS will limit or benefit you. The key is to keep this in mind before you deploy applications, not just on AWS but with any public cloud provider.

Watch our recap video below, and catch up with all of ESG's AWS re:Invent coverage on our site

Topics: AWS re:Invent