How Google Is challenging AWS; product vs. platform

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Big companies are often criticized for having “missed” the future — from the comfortable perch of a present where said future has come to pass, of course — but while the future is still the future incumbents are first more often than not.

Probably the best example is Microsoft: the company didn’t “miss mobile” — Windows Mobile came out in 2000 — but rather was handicapped by its allegiance to its license-based modular business model and inability to envision a world where its core product (Windows) was a planet orbiting mobile’s sun; everything about Windows Mobile’s design presumed the exact opposite.

One could make the same argument about Google and the enterprise; both G Suite (née Google Apps for Your Domain) and Google Docs launched a decade ago and enjoyed modest success, particularly in smaller businesses and education; unsurprisingly, both markets share broadly similar characteristics to Google’s core consumer user base — limited configurability and a low price were good things. Traction was harder to come by in larger enterprises, though, and in fact over the last few years Office 365 has well out-paced G Suite, not only growing faster but winning back customers.

Still, for all the success Microsoft has had with Office 365, the real giant of cloud computing — which is to say the future of enterprise computing — is, as is so often the case, a company no one saw coming: the same year Google decided to take on Microsoft Amazon launched Amazon Web Services. What makes AWS so compelling is the way that it reflects Amazon itself: it is built for scale and with clearly-defined and hardened interfaces. Customers — first Amazon but also companies around the world — access “primitives” that can be mixed-and-matched to build a more efficient, scalable, and secure back-end than nearly any company could build on its own.

Read the source article at stratechery.com.