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5 minute readGoogle and Amazon: The Tournament in the Clouds

With data storage being a key component of cloud computing, we are keeping a close eye on what is happening among the major cloud players, so much so that we created this insightful infographic on the history and future of cloud storage. As an independent reseller that mainly deals with buying, selling and trading used EMC, refurbished NetApp and more, we’re curious to see how willing IT professionals will be to give up control of their storage environments to a big corporation. Our prediction is that it is unlikely, however, with most storage pros keeping a “hybrid” environment of onsite and offsite (cloud) storage. This article specifically addresses two of the major cloud players, Google and Amazon.

Google has thrown down the gauntlet and Amazon has not yet decided if it is willing to pick up the challenge.

The Test

  • Google reduced all of their pricing, the compute, memory and storage pricing, and the services that depend on these foundational resources.
  • Google agreed to “follow the industry curve” and decrease hardware costs.

In today’s economy where people are struggling to make ends meet, it is quite a surprise to see a major player volunteering to give up income. And this major player could take the whole game, just because of who they are, and what they do.

Google appears to want to extend their reach even further on the internet, by reeling in the

little guys who are on the fringe of the spenders. Customer loyalty will win on this one because the little guys remember who gave them a hands up.

Amazon will not pick up this trophy. Amazon is only interested in the marketplace when the win is in dollars, not people.

So how will Amazon counter-challenge?

Amazon has more revenue than Google ($75B compared to $60B, respectively), but Google has a better profit margin, growth rate and market capitalization. So Google definitely has a better stockpile of ammunition and weapons. Google has dug deep into the trenches and Amazon may not have the guts for hand to hand combat. 

Google has the foundational growth, servers, code, processes, and a global presence.

Amazon has a warehouse of inventory to move, but no real assets of their own to offer.

No tech, just boxes of stuff.

Look at what Google offers to the global marketplace, imagination and creativity. Google is sitting on data services that could be very tempting to new developers.

Amazon offers stuff.

Amazon can offer better customer service or a deeper discount, but they are still moving someone else’s stuff, someone else’s ideas. They are a jobber, moving one box from here to there.

Google, on the other hand, is offering expansion and imagination. Open horizons. Unlimited potential.

That gives Amazon the challenge to get better at what they do, selling. Unless they learn how to think and create and develop. They have proven they can market and sell, someone else’s stuff. Can they really develop and sell from within?

For heavy consumers of resources, Google’s price crash is a really big opportunity. When labor costs, energy costs, and increasing capital gains are challenging trophies to be won daily on the battlefield of business, a price cut on a very big piece of the budget pie can be a tremendous change in the profit bottom line.

Will IT companies use the monies for R&D? Will they grab this opportunity for what it is? Found money that can be used to change their vision? Something that can intervene in the endless plodding of one foot before the other in the slow trek for sustainability? Or will they stagnate and dump the money into the profit pond?

This will be an interesting tournament, let’s see who REALLY picks up the gauntlet… 

Where do you think cloud storage is headed? Do you foresee a mass move to the cloud or will storage pros keep most of their data onsite? Reliant is here to help. We offer a dedicated team of storage professionals that offer a free SAN health check and provide expertise to help you decide when and where to use the cloud to best suit your needs. Contact us for your free SAN health check

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Reid Smith-Vaniz

by Reid Smith-Vaniz

Reid is the founder and CEO of Reliant Technology and for 14 years has pursued his mission to remove the pain associated with maintaining IT infrastructure. Reid writes on common challenges related to maintaining, servicing, tracking, budgeting, and upgrading technology.

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About Reliant Technology

As Data Center and storage experts, Reliant Technology is available to provide consultations and solutions to your server backup needs. Our experienced engineers and IT specialists are ready to help you determine the best option for your Data Center. If you have a topic you would like to see discussed, or if you would like to submit an article for possible publication, please, get in touch with us.