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.

Comics
Cloud-Based Services vs. On-Premises: It’s About More Than Just Dollars

Cloud-Based Services vs. On-Premises: It’s About More Than Just Dollars

Cloud-Based Services vs. On-Premises The surface costs might give you pause, but the cost of diminishing your differentiators is far greater. Will a shift to the cloud save you money? Potential savings are historically the main business driver cited when companies move to the cloud, but it shouldn’t be viewed as a cost-saving exercise. There are many other compelling reasons to make the move, perhaps most importantly agility and scalability. A better question might be…

Adopting A Cohesive GRC Mindset For Cloud Security

Adopting A Cohesive GRC Mindset For Cloud Security

Cloud Security Mindset Businesses are becoming wise to the compelling benefits of cloud computing. When adopting cloud, they need a high level of confidence in how it will be risk-managed and controlled, to preserve the security of their information and integrity of their operations. Cloud implementation is sometimes built up over time in a business, while the technology and cybersecurity around it constantly evolves. This can lead businesses to finding themselves with a fragmented approach…

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. It’s getting worse: McKinsey in conjunction with the World Economic Forum have estimated that failing cyber security approaches could have…

Cloud-Based or On-Premise ERP Deployment? Find Out

Cloud-Based or On-Premise ERP Deployment? Find Out

ERP Deployment You know how ERP deployment can improve processes within your supply chain, and the things to keep in mind when implementing an ERP system. But do you know if cloud-based or on-premise ERP deployment is better for your company or industry? While cloud computing is becoming more and more popular, it is worth taking a moment to assess both options to determine what is best for you. There are a lot of considerations…

Four Trends Driving Demand For Data Security In 2017

Four Trends Driving Demand For Data Security In 2017

Data Security Trends 2017 will be a hallmark year for security in the enterprise as all industries have reached a tipping point with respect to cloud and mobile adoption, forcing more and more data beyond the corporate firewall. Over 100 IT executives weighed in on their plans for 2017 in our latest survey; buried among the responses, we identified four trends that are expected to drive demand for data security in the next year. Many…

Protecting Devices From Data Breach: Identity of Things (IDoT)

Protecting Devices From Data Breach: Identity of Things (IDoT)

How to Identify and Authenticate in the Expanding IoT Ecosystem It is a necessity to protect IoT devices and their associated data. As the IoT ecosystem continues to expand, the need to create an identity to newly-connected things is becoming increasingly crucial. These ‘things’ can include anything from basic sensors and gateways to industrial controls systems, retail terminals and scanners, and kiosks to medical devices, heating and lighting systems, connected homes, and smart cars. Identity…

Despite Record Breaches, Secure Third Party Access Still Not An IT Priority

Despite Record Breaches, Secure Third Party Access Still Not An IT Priority

Secure Third Party Access Still Not An IT Priority Research has revealed that third parties cause 63 percent of all data breaches. From HVAC contractors, to IT consultants, to supply chain analysts and beyond, the threats posed by third parties are real and growing. Deloitte, in its Global Survey 2016 of third party risk, reported that 87 percent of respondents had faced a disruptive incident with third parties in the last two to three years.…

Do Not Rely On Passwords To Protect Your Online Information

Do Not Rely On Passwords To Protect Your Online Information

Password Challenges  Simple passwords are no longer safe to use online. John Barco, vice president of Global Product Marketing at ForgeRock, explains why it’s time the industry embraced more advanced identity-centric solutions that improve the customer experience while also providing stronger security. Since the beginning of logins, consumers have used a simple username and password to secure their sensitive information across the Internet. This approach made do in the early days of ecommerce, but with the…

How To Humanize Your Data (And Why You Need To)

How To Humanize Your Data (And Why You Need To)

How To Humanize Your Data The modern enterprise is digital. It relies on accurate and timely data to support the information and process needs of its workforce and its customers. However, data suffers from a likability crisis. It’s as essential to us as oxygen, but because we don’t see it, we take it for granted. Because we take it for granted, we don’t often think we need to go open a window for fresh air.…