Enterprise

One slide shows why no one can catch Amazon's cloud

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Jeff Bezos
Amazon CEO Jeff Bezos  Mario Tama/Getty Images

No matter how you measure it, Amazon's cloud is huge and still growing at an unbelievable rate.

Amazon Web Services CEO Andy Jassy said on Wednesday that AWS was on track to do $13 billion in revenue this year and it's still growing at 50% over 2015. 

Whereas Amazon was once the bastion of startups who tended to use it until they were big enough to launch their own data centers, an astounding number of enterprises are now choosing to move their apps and data to Amazon and shut down some, or all, of their data centers. Amazon says it now has more than 1 million active customers including some of the biggest companies in the world.

Amazon is now adding more servers to its cloud on a daily basis than it took to power all of AWS in 2003, Jassy said.

As we previously reported, when Motorola opted to move everything to the cloud, the IT folks looked at Amazon, Microsoft, and Google and concluded that "Amazon had better technologies in almost all areas. It is much more mature in terms of functionality," according to Leo Wang, head of cloud computing.

But here's an interesting tidbit that should have competitors even more worried. As Amazon adds more customers and each one asks it to add new features, AWS is actually accelerating in adding stuff to its cloud. 

In 2015, it added 750 new features, nearly 3 times as many as it had added in 2013. In 2016, it has so far added 1,000, or three new features every day.

Amazon pace of innovation
Amazon re:Invent/Business Insider

The company is now such the 800-pound gorilla in the market that one of its original huge competitors, VMware, threw in the towel earlier this year and signed on to help sell AWS and make its data center software work better with the cloud. 

And it's even winning contracts from the big cloud companies themselves. Earlier this year, Salesforce reversed course on its chummy relationship with Microsoft Azure. (In 2014, Salesforce moved its ExactTarget business unit to Azure.) In May, Salesforce chose Amazon as its "preferred cloud partner." That means it will use AWS to be its international data center in countries where Salesforce does not yet have its own data center for its biggest apps, including its flagship customer relationship management apps. That's a deal worth $400 million over four years to Amazon, the Wall Street Journal reported. 

On Wednesday, Amazon announced another, similar partnership with cloud HR software provider Workday, where Workday will use Amazon's international data centers as well (starting with Canada).

In a dig at Salesforce's and Workday's mutual rival, Oracle, Salesforce CEO Marc Benioff even tweeted about the partnership.

 

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.