I Am Competing As Well: Amazon

I am competing as well: Amazon

Well, how many of us could have imagined that one of the pioneers of cloud computing – Amazon, would have started feeling the heat of competition so early in the domain. However the fact is that Amazon has recently re-worked its marketing and pricing strategies and has started pushing aggressively on consumer sensitive price points. With the advent of numerous cloud computing providers like Google etc., it is important for the organization to stay competitive in the fast and dynamic environment of cloud computing.

Services from giants like Microsoft Azure, or Rackspace cloud computing platforms, have forced Amazon to get fierce about the pricing.

What exactly is on the card?

Amazon has always believed in bringing the benefit to consumers that commit to it for long time reservation. Therefore in the current marketing policy, it is quite evident that huge discounts and offers are being given to consumers who are willing to stick to Amazon for a longer duration. This way Amazon wants to retain the consumer base it taps. It also helps in not going for impressing the same client again and again. Therefore if for instance you choose to block a three year reservation, you would end up getting huge discounts from Amazon for your little effort.

Who is benefiting?

It is wrong to think of the target group that Amazon is focussing on. In fact, it is not focusing on any real target group. The customer base in its segment is simply being offered awesome discounts by way of coupons, price reductions, saving options, EMI option, and also quarterly balancing. For companies that come out with monthly budgets, it has those monthly pricing plans. Then there are companies that are usually large and have stuck up budgets. These are usually in the time frame of a quarter to a full year. For such companies, Amazon has decided to provide yearly balancing plans. This means that if your company is tied up with a yearly budget, you are hedged against the spikes and troughs in your usage for one full year. The balancing will be done at the end of the year. Similar there are plans available for quarterly payments as well.

Another important area or target group that Amazon is focusing on is start-ups. Various start-ups from developed as well as developing nations have chosen Amazon cloud services due to the flexible and affordable price points and options that they provide. Amazon wants to further cash in on this phenomena by providing further pricing benefits to these consumers.

Amazon is picking its sweet spots quite aggressively. One might think for an instant that a company of Amazon’s stature in this domain doesn’t need to do much for maintaining the product leadership in this category. However it is here where Amazon has out beaten its rivals by thinking out of the box, and also very aggressively. Since everyone is into a commodity service, therefore by getting aggressive on pricing Amazon has given signals that it is not sitting idle and complacent at all.

By Kaamil Nakhasi

Sorry, comments are closed for this post.

What The FITARA Scorecard Tells Us About Government Cyber Security Preparedness

What The FITARA Scorecard Tells Us About Government Cyber Security Preparedness

Government Cyber Security Preparedness Last year’s massive data breach of Office of Personnel Management, as well as other recent cyber security incidents affecting federal agencies, underscored the urgency of bringing the federal government’s security infrastructure up to date. Although many agencies have made strides toward hardening their cyber security, outdated IT infrastructure and architecture is…

World Backup Day: Understand The Data You Are Protecting

World Backup Day: Understand The Data You Are Protecting

World Backup Day: Understand The Data You Are Protecting Did you know that 113 phones are lost or stolen every minute? What about the fact that 1 in 10 computers are infected with a virus every month? Thanks to World Backup Day, an independent initiative that was started in 2011, awareness is being raised about…

Why Security Practitioners Need To Apply The 80-20 Rules To Data Security

Why Security Practitioners Need To Apply The 80-20 Rules To Data Security

The 80-20 Rule For Security Practitioners  Everyday we learn about yet another egregious data security breach, exposure of customer data or misuse of data. It begs the question why in this 21st century, as a security industry we cannot seem to secure our most valuable data assets when technology has surpassed our expectations in other regards.…

7 Common Cloud Security Missteps

7 Common Cloud Security Missteps

Cloud Security Missteps Cloud computing remains shrouded in mystery for the average American. The most common sentiment is, “It’s not secure.” Few realize how many cloud applications they access every day: Facebook, Gmail, Uber, Evernote, Venmo, and the list goes on and on… People flock to cloud services for convenient solutions to everyday tasks. They…

Why Hybrid Cloud Delivers Better Business Agility

Why Hybrid Cloud Delivers Better Business Agility

Why Hybrid Cloud Delivers Better Business Agility A CIO friend of mine once told me that a hybrid cloud model enables him to “own the base, rent the spike” when it comes to unplanned events. Let’s face it – maintaining unused infrastructure for rare or random IT events is expensive and unnecessary in a cloud…

Hybrid IT Matures Just In Time To Tackle Complex Challenges

Hybrid IT Matures Just In Time To Tackle Complex Challenges

Tackling Complex IT Challenges Sponsored by Hybrid IT: The Next Evolution in Enterprise IT, NetApp and Verizon. Today’s sophisticated business environment demands a dynamic and robust IT infrastructure which is a far cry from the closed, controlled environments that most IT departments were created to handle. A hybrid IT infrastructure, drawing services from multiple cloud-based…

Featured Sponsored Articles
The Benefits of Cloud-Based Phone Systems

The Benefits of Cloud-Based Phone Systems

Cloud-Based Phone Systems This article has been sponsored by RingCentral, provider of state-of-the-art cloud infrastructure. Although today’s businesses rely on a host of modern technology, the century-old telephone call is as essential as ever. Of course, businesses today aren’t relying on simple analog voice calls for effective interaction with partners, suppliers, colleagues, and customers, but…

Featured Sponsored Articles
Working With Cloud White Label Partners

Working With Cloud White Label Partners

Cloud White Label Services Sponsored by CloudMGR The benefits of consolidating your cloud to one of the giants such as AWS, Microsoft Azure, and Google Cloud are improving as competition increases, with pricing wars between the service providers meaning better savings for businesses utilizing these services, and an abundance of features at user fingertips as…

Featured Sponsored Articles

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Sponsor