Small vs. Large: Amazon Explains How Companies Use Cloud Computing - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business/E-Business
Commentary
6/29/2009
05:12 PM
Fredric Paul
Fredric Paul
Commentary
50%
50%

Small vs. Large: Amazon Explains How Companies Use Cloud Computing

Cloud computing is often promoted as leveling the playing field between small businesses and large enterprises. But Andrew R. Jassy, senior vice president of Web services at Amazon, says that small companies use the cloud differently.

Cloud computing is often promoted as leveling the playing field between small businesses and large enterprises. But Andrew R. Jassy, senior vice president of Web services at Amazon, says that small companies use the cloud differently.Jassey was recently interviewed by Forbes' Ed Sperling, and he touched on a wide variety of topics. But I was most interested in his comments about small companies.

As usual, Jassey noted that, "We have a pretty wide customer base ranging from start-ups to enterprises." But when asked about the differences between large and small customers, he responded:

Large customers aren't starting from ground zero. They have a pretty significant infrastructure. They have legacy software they have to figure out how they're going to migrate. What we're seeing is they pick a couple of projects to run as pilots. What they find is the value proposition is attractive from the standpoint of not having to run that muck yourself, from a scale perspective and from a time to market perspective. We can provision servers in minutes vs. weeks. For them to even to get a server takes eight to 12 weeks. This way they can run the test, see what they can peel off and they start to build a year or two plan to peel off parts of their infrastructure.

But for startups:

It's so hard to get funding from VCs that [these services are] a huge benefit to start-ups. They don't have to spend that CapEx on a data center or co-location or servers. It's a huge advantage to turn CapEx into a variable expense. They also don't have to deal with a legacy infrastructure. They're building their services directly on our infrastructure.

See The Entire Forbes Interview: Amazon's Golden Cloud

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Slideshows
10 Ways to Transition Traditional IT Talent to Cloud Talent
Lisa Morgan, Freelance Writer,  11/23/2020
News
What Comes Next for the COVID-19 Computing Consortium
Joao-Pierre S. Ruth, Senior Writer,  11/24/2020
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll