Insights from re:Invent 2016

Start Here

Get in touch with a
TriCore Solutions specialist

Blog | Dec 13, 2016

Why Amazon Leads the Public Cloud Market: Insights from re:Invent

According to a recent TechCrunch article, Amazon is “the most important enterprise company.” The article continues that, “It is no longer a question of ‘if’ enterprises are moving to the cloud, but 

From analytics (Quicksight, Athena to query S3) to artificial intelligence (voice and image recognition, text to speech, Alexa) and let’s not forget IoT (data collection and sensor integration, Lambda serverless compute), conversations about innovation and where the market is headed were in no short supply. The energy is palpable, and being there was a good reminder of why AWS is making it difficult for others to advance in the public cloud sphere.

AWS is continuing to shatter barriers that slow adoption, delivering new instance types, innovating to enable larger capacities and providing developers with perks that make their lives easier, such as easy-to-deploy servers using Lightsail. With more ways to help companies get data to AWS, managed service providers stand to gain tremendously through continued collaboration with AWS. On their side, AWS announced support for new managed services: Glue (managed ETL), Shield (managed DDOS), and Opworks for Chef Automate.The team assembled some questions in advance of the show that I’ve answered below, reflecting upon my time. For those of you who attended re:Invent, what would you add? Let us know in the comments.

  • What did you learn at re:Invent that is most applicable to TriCore customers? Any tips or best practices we should note?

The show is geared to a wide audience – dev, mobile, gaming, automation, IOT, edge processing, and corporate IT – so it’s a great opportunity to get a pulse of the industry more broadly. What was most applicable? Learning more about how to architect for cost, resiliency, and compliance, and using tools to automate and safeguard builds. In fact, recurring theme at the show was that of the mindset of consume versus build: In the Thursday morning keynote, Eric Gunderson, CEO of Mapbox, said “The greatest savings we’ve had is focus. Look at everything we didn’t have to build.” AWS provides opportunities to scale by reducing TCO and reducing time-intensive build projects by leveraging what AWS provides.

  • ZDNet recently published an article on cloud compute pricing – Google versus AWS versus Azure. Is there anything companies should keep in mind when looking to move to public cloud to optimize spend and TCO?

There are service providers, like TriCore, that will work with customers to assist in migrating workloads to the AWS Platform and implement ongoing governance around usage/spend, dev-ops, availability and security on the cloud. We can evaluate workloads to understand the best platform to optimize for price/performance and then continue to manage those applications in the cloud going forward.

And, as AWS becomes more customer-centric, enterprise development teams will become more accustomed to outsourcing projects. AWS is committed to reducing 80 percent of developers’ time spent on development, according to a recent InformationWeek article, so that they can shift their efforts to developing new code instead. With the right partnerships in place, AWS will continue to thrive and in-house IT will have more opportunity than ever before to prioritize the strategic initiatives they oversee – and what efficiencies they gain by leveraging experts outside of their organization.

  • What were the biggest topics on peoples’ minds at the show based on conversations had or sessions attended?

I think for those that haven’t adopted public cloud, it’s a little bit daunting. They’re trying to find out where to start, dip a toe or dive in? Organizations presented case studies highlighting their successes with varying approaches to cloud adoption, at both ends of the spectrum, but the question lingered: “Where do I begin? What should I prioritize in 2017?” The answer will vary depending on the company, but what surfaced is how much counsel companies are seeking to map out their course to public cloud.

  • In your opinion, will AWS continue to own the market share of public cloud in the future? What makes them stand out and keeps them ahead of the others, from an MSP standpoint?

AWS will continue to lead the market for a number of reasons: their ability to innovate and pace of growth, their willingness to push boundaries, and their capacity to solve for hurdles, establish community and create buzz. I don’t see others catching up to AWS’ market position any time soon – and the event really crystallized this for me. Nearly half of participants in a recent TriCore survey indicated they are using AWS to host their public cloud, a figure that isn’t surprising given these observations.

  • What are people most inclined to migrate to AWS right now? What are they most reluctant to migrate?

Web development, mobile applications, massive scale data, and unique workloads are what’s on the table for immediate migration in most cases. However, certain organizations – like start-ups – may be more inclined to consider other parts of their business to move to the public cloud. As custom software modernizes and moves towards SaaS models, we’ll see even more in the cloud in the near future. Workday announced their partnership to run on AWS at the show, another example of how the BI and data analytics tools available on AWS are evolving, making the case for ERP migration to the cloud more appealing for forward-thinking companies. Only 20 percent of respondents to our latest survey indicated they planned on moving ERP to public cloud in the next year, far fewer than those ready to move web applications, database and development systems, but the reluctance to migrate ERP may be shifting. Having source ERP data alongside BI in AWS makes it easier to drawing meaningful insight from your data, something that will help companies be more agile in the future.

Thinking about public cloud migration as part of your 2017 IT agenda? Download our report to learn what IT leaders are preparing for to set up their teams for success.

Get the full report here.