AWS Reinvents AWS. Again


In the last week of November 2017, AWS held it’s customer event, Reinvent in Las Vegas. Not surprisingly, it is big. Total attendees were 43,000. Last year it was less than 30,000.

Everyone knows AWS is big. In the last four quarters, it had revenue of $18B at a growth rate of 42%. At this current growth rate, new revenue growth in 2018 will represent US$8B. According to Fortune, the following firms have revenue of approximately $8B.

  • HCL
  • Dick’s Sporting Goods
  • Campbell’s Soup.
  • News Corp

AWS will grow a company their size in 2018. It is an extraordinary metric for a company that had revenue of under US$4B in 2014. It will most likely hit $20B in the next quarter. At current growth rates, within 5 quarters it will be 30B, then $40B. It is a revenue growth and scale machine the likes of which the technology has not seen.

Consider the scale that provides, the supply chain that is required, the on-boarding of staff, the onboarding of partners and clients, and importantly, the requirements for direct customer feedback to drive product innovation. Nothing about AWS is small.

Revenue is just one measure of growth. At Reinvent this year, there was an increased visibility, focus and overall investment with the partner ecosystem. Again, massive numbers. Last year, AWS added 10,000 new partners. Not 10,000 new certified people, but 10,000 new partner organisations. The level of infrastructure and process excellence required to do that is immense. Fortunately, AWS has a parent company with some history when it comes to process and supply chain.

Aside from the growth in numbers of partners, AWS made considerable investments in the overall partner experience, remuneration, certification and frankly it was about time that this was recognized more fully from AWS. It has invested heavily on the AWS resource side, focusing on ensuring that the correct partner meets the correct customer opportunity. This is incredibly critical when you are at scale and growing at over 40% per annum.

In terms of offerings from AWS announced at the event there is a lot to focus on. As is their approach, there were hundreds. Overall, the most significant update was to the Machine Learning platforms. A lot of focus on Video based Machine Learning. Neptune is a new Graph based Database. Other announcements spanned the ecosystem.

Whilst it has a dominant position, capioIT believes that diversity remains a key challenge for AWS. According to analysis of the AWS organizational structure, only 2 of 29 named executives are female. capioIT has written that white middle aged males are not the future of IT. AWS is a leader and benchmark that must change. Quickly. I appreciate it is an engineering firm, and sadly a lack of diversity goes with the territory, but across gender, race and other forms of diversity metrics, there is clearly more that it must do.

To give credit, AWS is aware, there were diversity sessions at the event as a start point, but it can learn from Salesforce. Salesforce is incredibly diverse and whilst it makes a lot of noise about the diversity, it can back it up better than anyone else with both spend and functionality.

Capture Point

AWS is constantly growing in all measures. The growth is deep and fast. It is increasing its reach into the enterprise. The increased focus on partners highlights this. The achievement of onboarding 10,000 new partners in 2017 is phenomenal. It is not invulnerable. The minute it thinks it is, the end will accelerate. That is part of what makes it unique. Oh, and Amazon as a parent company.

If you require further information, please contact Phil Hassey, CEO of capioIT. capioIT is an advisory firm focused on helping organisations to understand emerging technology as the world becomes Digital. Phil may be contacted easily in the digital and real world.

phil@capioit.com

About capioIT - Phil Hassey

If you require further information, please contact Phil Hassey, CEO of capioIT. capioIT is an advisory firm focused on helping organisations to understand emerging technology as the world becomes Digital. Phil may be contacted easily in the digital and real world. phil@capioit.com +61422231793
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