Amazon Web Services (AWS) wants to remain the leader in the world cloud market. To do so, the e-market giant has launched a hardware production: it now makes its own network switches.
AWS is THE worldwide cloud computing master. It is far ahead of all other tech big names (Microsoft Azure, Google Cloud). In order to maintain this position, Amazon’s cloud division wants to diversify the offer by investing in hardware.
AWS could make network switches for SMB and SME
The Information relates AWS could soon launch its own network switch assembly line, according to insiders.
The group can rely on its considerable experience of large-scale data center management to offer effective equipment. The experts believe AWS would target SMB (Small and Medium Businesses) and SME (Small and Medium Enterprises). Larger businesses usually rely on several cloud providers and would rather use a single hardware business, separate from the cloud provider.
Head-on competition with Cisco, Arista or Juniper?
The market’s leaders (Cisco, Arista or Juniper) should not suffer much from the competition when it comes to large businesses. Yet, the cloud market for SMB and SME is foreseen as the new Eldorado in years to come.
This explains the fall in share prices of Cisco, Arista and Juniper Networks when The Information published its article. Mainly because these past years, the e-commerce giant, whenever it has embarked on a new endeavor, has reached the top spot. Almost everytime.