Amazon sets its sights on enterprise IT

In the evolution of the Amazon Cloud, Wednesday’s news of a trial service designed specifically for the core applications of large companies seems to mark a watershed.

So far, the Amazon pitch has mainly been directed at smaller companies, or at bigger ones looking for somewhere to host high-volume Web services. It is now trying to take things one step further.

This is a service targeted directly at IT managers in big companies. The pitch: if you are running out of capacity for some of your internal applications, ease the pressure by renting space in Amazon’s datacentres. Using a VPN link, companies will eventually be able to connect directly to all the various components of Amazon Web Services (starting with the EC2 compute service) to handle their overflow, applying all their existing security and other management policies.

Others have tried to attack this market in their own way, from IBM to Rackspace. But as Technology Business Research analayst Ezra Gottheil points out, Amazon brings the perspective of an online retailer to bear on the problem: that means a mass-market, self-service, flat-fee approach that is easy for new customers to trial and has the potential to scale fast.

When it comes to mission-critical applications, however, the IT manager is a cautious beast, and for good reason. The biggest nut Amazon will have to crack concerns guarantees over service levels. Offering a one-size-fits-all service may make life simpler, but it may not appeal to IT managers who have their own very specific requirements when it comes to service availability.

Eventually, says Mr Gottheil, Amazon is likely to offer higher guaranteed service levels at premium rates. For now, the Virtual Private Cloud is a clear sign of its intention to play in the mainstream enterprise technology markets.

FT techfeed

Tech Blog

Analysis & reviews

About this blog Blog guide
Richard Waters, Chris Nuttall and April Dembosky in the FT's San Francisco bureau share their views - plus tech insights from Tim Bradshaw and Maija Palmer in London and Robin Kwong in Taipei.



Read about the authors


To comment, please register for free with FT.com and read our policy on submitting comments.

All posts are published in UK time.

Contact the FT Tech Hub team: richard.waters@ft.com, chris.nuttall@ft.com, april.dembosky@ft.com, maija.palmer@ft.com, robin.kwong@ft.com and tim.bradshaw@ft.com.

See the full list of FT blogs.

Archive

« Jul Sep »August 2009
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31  

Tech analysis and reviews

Coding for dummies

Execs learn geek techniques

Time for smartwatches?

Sony synchronises watches with smartphones

Tags

advertising android apple AT&T Electronic Arts Europe Facebook funding google hacking hewlett-packard HP htc instagram intel iPad iphone IPO Jawbone Lenovo London megaupload microsoft Mobile Netflix Nintendo nokia nokia lumia patents privacy samsung smartphones social media social networking Sony SOPA Spotify story of the week Tablets Toshiba twitter venture capital Wikipedia Yahoo Zynga