• Home
  • Latest
  • Coins2Day 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Amazon

Amazon Cloud Chief Says New Customers Weigh Many Clouds, but End Up with One

Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
June 21, 2016, 1:27 PM ET
Andy Jassy, Amazon SVP, at AWS Re:Invent 2015.
Andy Jassy, Amazon SVP, at AWS Re:Invent 2015.Amazon Web Services

Most companies making a move into cloud computing start out wanting to use multiple cloud providers, but end up deciding to go with one, according to Andy Jassy, the Amazon long-timer who was promoted to CEO of Amazon Web Services in April.

Clearly he has a dog in this fight. AWS is the biggest and most mature public cloud provider—but now competes with Microsoft Azure and Google Cloud Platform, neither of which existed 10 years ago when Amazon (AMZN) launched this new category of computing.

Amazon, like Microsoft (MSFT) and Google (GOOG) has a worldwide network of data centers stuffed with servers, storage, and networking that customers can rent as needed.

Amazon Customers Worry About Cloud Lockin

Most of the big companies I talk to about cloud deployments are leery of putting all their eggs in one cloud basket. They feel that by using more than one cloud provider, they can keep the other provider honest. Most of these companies have faced vendor lock-in before and feel abused by IT suppliers that made it difficult to move to a rival product or even integrate their technology with that of another company.

Oracle (ORCL), VMware (VMW), Microsoft are all often criticized for these practices.

Get Data Sheet, Coins2Day’s daily newsletter on the business of technology.

But Jassy swears AWS is different from its predecessors. The lock-in question is very understandable, he told attendees of the AWS Public Sector Summit in Washington D.C. On Tuesday. “People are looking at being locked into Oracle for the last few years so you can understand the trepidation.”

Here he was interrupted by audience laughter. “I wasn’t really trying to be funny. But vendors have used proprietary software, licensing and punitive audits to keep customers,” he noted.

Jassy said when most companies do the analysis they realize that using multiple providers means they have to standardize on the most basic cloud components. In AWS’s case that would be EC2 servers and S3 storage, but not all the workflow, messaging, and database services can layer atop those resources.

That means the company can’t reap the full benefits of AWS, Jassy said. In fact, many AWS customers do deploy just in this way. They love the cheap and flexible Amazon compute and storage, but eschew thise aforementioned higher level services because they know that will make exiting difficult.

Secondly, managing multiple sets of technology sucks up time and resources that could be better spent elsewhere, Jassy said. Like a travel company building better reservation services, for example.

And finally splitting work up between clouds means less of a discount on any one cloud. “You give up buying leverage. All the providers have volume discounts so if you split across clouds you get less leverage.”

He also maintained that Amazon’s various migration tools that move corporate data into AWS work both ways, although it’s worth noting that Amazon’s SnowBall data migration tool started out as a one-way offering that added return trip capability (data egress) months later.

For better or worse, the perception remains that AWS still makes it easy to schlep your stuff into its cloud and less easy to get it out.

With all respect to AWS, the IT powers of the past—the Oracles, Microsofts and VMwares of the world—do not worry potential cloud customers so much right now. In this category AWS is the too-big-to-fail company. And as customer-focused as AWS may be, that power is worrisome to those customers. Ironically, those same companies who cursed heavy-handed tactics by Microsoft and Oracle may now view those companies’ cloud efforts as a hedge against Amazon.

That’s one reason Pivotal, the EMC (EMC)-VMware spin-off and other companies are pitching technology that runs across multiple clouds and inside corporate data centers. That ability, if it works as advertised, may assure would-be cloud customers that they really aren’t locked into any one provider.

About the Author
Barb Darrow
By Barb Darrow
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Coins2Day Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Coins2Day 500
  • Global 500
  • Coins2Day 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Coins2Day Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Coins2Day Brand Studio
  • Coins2Day Analytics
  • Coins2Day Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Coins2Day
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Personal Financemortgages
Current mortgage rates report for Jan. 14, 2026: Finally, a dip below 6%
By Glen Luke FlanaganJanuary 14, 2026
1 day ago
Personal FinanceReal Estate
Current ARM mortgage rates report for Jan. 14, 2026
By Glen Luke FlanaganJanuary 14, 2026
1 day ago
Personal FinanceReal Estate
Current refi mortgage rates report for Jan. 14, 2026
By Glen Luke FlanaganJanuary 14, 2026
1 day ago
Alphabet and Google CEO Sundar Pichai seated next to Apple CEO Tim Cook at a formal dinner.
AIApple
What Apple’s AI deal with Google means for the two tech giants, and for $500 billion ‘upstart’ OpenAI
By Jeremy Kahn and Beatrice NolanJanuary 13, 2026
1 day ago
Hubbard
Future of WorkJobs
Carhartt CEO says they always focused on blue-collar workers—but hipsters came anyway: ‘We welcome anyone … that wants to celebrate hard work’
By Nick LichtenbergJanuary 13, 2026
1 day ago
Personal FinanceCertificates of Deposit (CDs)
Best certificates of deposit (CDs) for January 2026
By Glen Luke FlanaganJanuary 13, 2026
2 days ago

Most Popular

placeholder alt text
Personal Finance
Peter Thiel makes his biggest donation in years to help defeat California’s billionaire wealth tax
By Nick LichtenbergJanuary 14, 2026
17 hours ago
placeholder alt text
Success
Despite his $2.6 billion net worth, MrBeast says he’s having to borrow cash and doesn’t even have enough money in his bank account to buy McDonald’s
By Emma BurleighJanuary 13, 2026
2 days ago
placeholder alt text
AI
'Godfather of AI' says the technology will create massive unemployment and send profits soaring — 'that is the capitalist system'
By Jason MaJanuary 12, 2026
3 days ago
placeholder alt text
AI
Being mean to ChatGPT can boost its accuracy, but scientists warn you may regret it
By Marco Quiroz-GutierrezJanuary 13, 2026
2 days ago
placeholder alt text
Future of Work
'Microshifting,' an extreme form of hybrid working that breaks work into short, non-continuous blocks, is on the rise
By Nick LichtenbergJanuary 13, 2026
2 days ago
placeholder alt text
Economy
Goldman Sachs top economist says Powell probe won’t change the Fed: 'Decisions are going to be made based on employment and inflation'
By Sasha RogelbergJanuary 12, 2026
3 days ago

© 2025 Coins2Day Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Coins2Day Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.