Why IBM will win the war with Amazon Web Services

By Rob Enderle, CIO |  Cloud Computing, Amazon Web Services, AWS

Amazon Web Services represents perhaps the most disruptive threat faced by the traditional set of enterprise vendors - and IBM is stepping up to address the AWS threat with a vengeance.

IBM knows how to deal with threats like this. The company has more than a century of experience fighting off disruptive competitors. Most of them are long gone, while IBM is still with us, so the firm's approach has historically been very successful.

IBM is gearing up for war. Since Amazon is mucking around in IBM's space, the folks in Armonk should have the positional advantage. I focus here on IBM's strengths compared to Amazon's weaknesses largely because Amazon isn't fundamentally an IT solutions provider. Rather, Amazon is a successful retailer that found a low-cost way to provide services through their retail model to IT. Typically, these efforts don't survive; in the face of focused competition, they aren't adjacent to the firm's core business (retail, in Amazon's case). IBM is honed in, once again, on proving this well tested theory.

Amazon Lacks a Deep Relationship With IT

As with Apple and Samsung, Amazon is exposed to marketing that disparages its offerings. It lacks the longevity in market to have the kind of loyalty and brand trust that companies such as IBM enjoy. This means Amazon's voice simply isn't as credible or influential in the space. Like Apple of old, Amazon hasn't yet developed the skills needed to defend against a marketing campaign that disparages it.

Worse, Amazon is light with marketing execution in general. This suggests that another vendor could take control of its brand image and do significant damage. (Look at what Apple did to Microsoft when the latter lacked the skills and the interest in protecting its brand during the Vista years.) The wife of CEO Jeff Bezos showcased this when she stepped in to discredit an unauthorized biography on the company and her husband. All this did was increase interest in the book. Amazon hasn't resourced the task of protecting its image. IBM will execute against this strategic weakness.

But ... Amazon Web Services Competitors Get Bad News From GartnerAnd ... Amazon Web Services Will Continue to Disrupt Enterprises, IT Vendors


Originally published on CIO |  Click here to read the original story.
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