1/ Amazon has decided to stop selling Google Chrome and Apple TV products that stream video to televisions.
2/ This appears to be a move to encourage customers to purchase an Amazon Prime subscription and Fire TV device to stream video products from their own catalog. ( Logically, the Amazon Prime video business must be underperforming and needs a boost. Or maybe Amazon Prime needs a boost to kick some more profit into the AMZN numbers where profit hasn’t been a requirement)
3/ Amazon AWS has repeatedly displaced/replaced companies who have built services on AWS.
For example, DNS (Route53), Database (DynamoDB, RDS), CDN (CloudFront) are just a few services that have displaced companies who were previously using AWS.
4/ AWS is a platform. As an enterprise buyer, If your suppliers use AWS for service delivery, they are at risk of AWS gazumping their business and disrupting your IT strategy.
5/ Amazon and AWS are separate business units but owned by the same companies. Aggressive competitive behaviour like this is a function of the business leadership therefore when AWS protests that it wouldn’t happen to their customers then
- AWS has already taken down many competitors 1
- If AWS needs a profit boost then management has established a precedent on competing with its customers.
- For example, what would happen to Dropbox if AWS decides to deliver a retail solution ?
6/ Cloud business risks are as real as technology risks. Vendors go out of business or acquired, products die or are sold off. But competing with your hosting/cloud platform is a new business risk to be added to vendor evaluation process.
AWS employees have been quick and vocal on social media to assure their customers that their business unit would never do something like this (no link, they don’t speak for the company). However, once a decision like this has been implemented somewhere in a company, it tends to be used again – permission has been given, if you will.
Amazon is a hard-charging and aggressive business culture focussed on growth at the expense of profits and its doubtful that anything would stop from applying the same decision to AWS if the situation required it.
It seem prudent to adjust your risk management appropriately.
- and probably doing a better job in most cases, but in some/few cases AWS services are less capable or functional. ↩