A Move That Shows Amazon Web Services Is Going Strong
A boost to hybrid cloud
A lot can be learned from Red Hat’s (RHT) and Amazon’s (AMZN) recent move to forge a deeper strategic partnership weaved around Amazon Web Services (or AWS) and OpenShift. To put everything in perspective, Amazon’s AWS is the world’s largest public cloud platform. On the other hand, Red Hat’s OpenShift is a private cloud and a leader in its own right. Extending AWS functions to OpenShift shows that hybrid cloud is here to stay as enterprises seek to enjoy the best of public and private clouds.
Interested in AMZN? Don't miss the next report.
Receive e-mail alerts for new research on AMZN
Due to customer demand
While Red Hat and Amazon have been in some form of partnership for several years, the strategic partnership they announced earlier this month goes deeper and is revealing.
In an interview with Fortune after announcing the extended OpenShift-AWS integration, Red Hat chief of technical business development Michael Ferris said that the move reflected customer demand. In other words, while there are other public cloud options, Red Hat customers showed a strong preference for AWS, which shows the strong influence Amazon has on the cloud computing market.
Amazon’s cloud dominance highlighted again
AWS controls nearly a third of the cloud computing market, according to Synergy Research Group. While Microsoft (MSFT), IBM (IBM), and Alphabet’s (GOOGL) Google are trying hard to weaken Amazon’s cloud dominance, the Red Hat move just proved that competitors will have to sweat to beat the 800-pound gorilla.