Amazon will go out of business ... if we stop innovating: AWS CTO: Page 2 of 2

 
From Amazon to AWS
 
Amazon will go out of business ... if we stop innovating: AWS CTO: Page 2 of 2Amazon chief executive Bezos (pic) once said that AWS and Amazon are “very similar.”
 
Although they are different businesses, “under the surface, the two are not so different after all,” he said, according to CNBC.
 
Vogels elaborates, saying that the same business model is applied to both Amazon.com’s retail business and AWS.
 
“Amazon the retailer is the principal company. Experiment, measure and learn is the way we bring things to market,” he says.
 
“When you think about innovation, you think about new things – but sometimes, the most effective innovation is about things that never change for your customers.
 
“So what are the things in retail that don’t change? The size of the catalogue. The larger the catalogue, the more likely that customers can find that thing they’re looking for.
 
“Every effort that you put into making your catalogue bigger, is actually helping your customers,” he adds.
 
Another factor that customers are always looking for is lower pricing.
 
“No-one ever is going to say, ‘Oh let’s shop at Amazon because its price is higher!’
 
“Anything you can do to drive your cost structure down, is going to help your customers,” says Vogel.
 
And finally there is convenience – how easy it is to buy things and have them delivered to you.
 
Vogels says that these factors were used to bring AWS to market, and argues that this was how the cloud giant turned around the traditional IT business model from being vendor-centric to becoming customer-centric.
 
“In the past, when you had to buy IT-related products, I always felt that the vendor was in charge,” he says.
 
“If I wanted to get the product at a lower price, I’d have to make a long-term commitment and have to write this big cheque upfront.
 
“We wanted to turn this around, so we made sure you don’t need a contract to use our services, there are no upfront fees, and [we promise] accessibility from anywhere in the world,” he declares, adding that AWS has dropped its prices 51 times since 2006.
 
The focus on customers also includes allowing them to drive your roadmap. “Every ounce of effort you put into innovation will benefit them forever,” says Vogels.
 
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