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AWS gets respect but also fear and loathing in Las Vegas

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Okay, the word “loathing” overstates the case, but Amazon’s prodigious public cloud does inspire fear even among some of the company’s best partners.

One big moment at last week’s AWS re:Invent conference in Las Vegas came when Amazon (s amzn) exec Andy Jassy announced WorkSpaces, a hosted desktop-as-a-service offering from the cloud giant.

With that one sentence Jassy put Citrix(s ctrx), VMware(s vmw) and Microsoft(s msft) — all desktop virtualization players — on notice. What was unclear to many is why, with adoption of desktop virtualization still lagging despite all these available options, should AWS get involved?

AWS SVP Andy Jassy speaking at AWS re:Invent.
AWS SVP Andy Jassy speaking at AWS re:Invent.

Amazon’s response to that question was, as it almost always is: customer demand.  “Our most frequent request from large customers has been for a desktop solution,” Adam Selipsky, VP of marketing, sales, product management and support told me. “There’s a big pain point around desktop management — a lot of cost around software, hardware and administration and that’s only gotten worse with the proliferation of new devices,” he said.

By offloading all that hardware/software/admin to Amazon’s cloud, IT folks could, in theory, rid themselves of a huge headache. But the aforementioned desktop virtualization players — as well as flash storage startups that cite desktop virtualization as a key driver to adoption — may inherit that pain if WorkSpaces takes off.

This is one energized-but-nervous ecosystem

The proliferation of AWS services doesn’t just ding entrenched IT giants  — but also the hundreds of small ISV and service partners that have grown up around AWS itself.

Smaller players — many of which offer add-on monitoring, cost assessment and other tools that fill gaps in the AWS stack, publicly praise the company’s ability to continually churn out new services and cut prices. Privately, they’re sweating out concern that if their business does well enough, AWS will swoop into their market and take it over, as always citing customer demand.

Redmonk analyst Stephen O’Grady has a great take here on the breadth of Amazon’s ambitions on display at AWS Re:Invent. And, he sees the same similarities I do between AWS and Microsoft of a decade or so ago when it “owned” more than 90 percent of desktops and a good chunk of the server OS market.

“AWS is effectively the juggernaut that Microsoft was, but in a market with — at least theoretically — less protection from lock-in,” O’Grady said via email. “So it follows that they’ll be more aggressive from an innovation standpoint than Microsoft was because they’ll have to be. Hence the 200+ releases per year. That’s how they’ll hope to sustain the momentum.”

Joseph Coyle, North America CTO of Capgemini — an AWS partner — acknowledges similarities to Microsoft on the surface but also sees one big difference.

“Say what you want about [Amazon CEO] Jeff Bezos but his vision is not at all the same as was Bill Gates. Bezos wins not by squashing as MS did but by not even focusing on the competition and just on the client,” he noted by email.

All about the customer?

Of course, skeptics might argue that the whole “we just do what the customer asks” argument can be a clever way to mask ambitions to crush competitors, but either way the result is the same if the company is as big and powerful as AWS.

While many see AWS right now as invincible, it’s helpful to remember that very few companies sustain such dominance from era to era.  And, Amazon’s continued addition of new services carries its own risk.

As O’Grady noted in his blog:

“The broader and more diverse the business, the more difficult it becomes to manage effectively – not least because you end up making more enemies along the way. It remains to be seen whether or not Amazon’s increasing appetite to cloudify all the things has a similar effect on its ability to execute moving forward, but in the interim customers have a brand new stable of toys to play with.”

Feature photo courtesy of  Flickr user different2une

7 Responses to “AWS gets respect but also fear and loathing in Las Vegas”

  1. i was puzzled by WorkSpaces since i just don’t see the demand for vdi except what i hear from vendors. Citrix et al may have “better” solutions but we all know better does not always win and i just don’t see the adoption. i could be wrong….it’s happened before god knows.

  2. Andi Mann

    Great article Barb, and good to read Stephen’s thoughts too.

    I wonder if you could spend more time explaining Workspaces for readers like me. After much back and forth on Twitter, I am among many who simply do not see the opportunity for Amazon in hosted virtual desktops. Who are all these customers that Amazon says want to rent an under-featured server instance (Workspaces is a Windows Server solution, not a Windows desktop) from a cloud provider with no desktop experience whatsoever?

    Apart from the good points you have outlined here, issues regarding the inferior technology, limited compliance and governance, lack of experience, poor user support, user customization, app installation, compatibility gaps, and many other factors make this a substantially worse solution than anything currently on the market. It is a fundamentally flawed service at best.

    Moreover, if the use cases for desktop computing are rapidly fading (as many say, and as hardware sales reflect), then the virtual desktop is probably already dead. In the face of consumer-driven IT, the smart ‘future-proof’ move now is to cloud-based apps to support mobile devices, and (more importantly) to BYOD.

    As for Citrix, VMware, Microsoft – they all offer markedly superior services, including cloud-hosted desktops (actual desktops, btw) and application streaming, with excellent support for mobile devices and BYOD.

    Seems to me that Workspaces is a server-based Time Sharing Option, and about 20 years too late to market. I don’t get it.

    I posted more detail on why Amazon Workspaces is a dry river in my latest blog post – I hope you will please read this.

    Andi Mann
    CA Technologies.

    • I agree with Andi, although the virtual desktop initiative is getting a lot of press, I just don’t see it as a long term solution to enterprises. In my mind it is more of a stop-gap while migrating to a web and mobile environment.

  3. Andrew Wright

    This duality was palpable at re:Invent prior to the keynotes. ISVs seemed equally excited and nervous about new service announcements… and everyone seemed to look over at Citrix after Workspaces.

    If you’re offering a service on AWS that is expensive and complex AND in an area where AWS is seeing enough demand, watch out (see Citrix, Microsoft). Last year Bezos said something to the effect of “your margin is my opportunity” and we’re seeing that here.

    However, take CloudTrail. AWS reached out to a number of quality ISVs (see Loggly) to help them integrate CloudTrail into their services. AWS wanted to meet a need of many enterprises that have audit requirements, but clearly didn’t want to whack the ISV ecosystem.

    • Vinod Shintre

      That’s correct Andrew, CloudTrail would be the first service they have announced with ISV in the loop to build solutions on top of it & hope they stick to that.