AWS, Microsoft and Google take different paths to the cloud


A recent outage at Amazon Web Services rekindled the debate about whether it is wise to rely too heavily on one cloud service provider. Such snafus are rare for AWS, so CIOs worry more about the potential for vendors to turn off their service without notice.

But CIOs who bet on multiple providers often invite challenges, including committing resources to work with each vendor, said Adrian Cockcroft, vice president of cloud architecture strategy for Amazon Web Services, at this week’s WSJ CIO Network conference, which included also appearances from executives running Microsoft and Google’s cloud businesses.

When an audience member lamented the fact that AWS and others reserve the right to suddenly terminate services, Cockcroft said an enterprise agreement, rather than a simple click-through license, is the best option for CIOs seeking to avoid business disruption. “For any enterprise we should set up an EA [enterprise agreement, which has whatever you need in it … it’s not something where we can just turn it off or you can just turn it off,” Cockcroft said.

Cockcroft said that splitting cloud services between providers slows deployment because companies must familiarize themselves with different vendors’ technologies. Splitting cloud capacity between two vendors, for example, also cuts volume discounts in half. A far more common scenario is that CIOs choose AWS to deploy most applications and select another vendor to run test or ancillary services, Cockcroft said.

AWS’ cloud business, worth $13 billion a year and growing, suggest Cockcroft isn’t exaggerating. AWS has inked major deals with marquis customers such as Capital One, Matson, Under Armour, Live Nation and several other big-name brands. The company expects to extend its lead through serverless computing, which allows companies to run applications in 100 milliseconds without delegating services, Cockcroft said.

Microsoft partners for the cloud

Where AWS is capturing the lion’s share of enterprise deals, Microsoft has taken a different tack. Leveraging its vertical expertise, Microsoft is partnering with companies on strategic cloud deals, said Judson Althoff, the company’s executive vice president of worldwide commercial business. Working closely with Boeing CIO Ted Colbert, Microsoft’s Azure team is building, selling and running aviation applications on its cloud.

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