Amazon Cloud Computation: I have been chased, I have never been surpassed.

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Original Red Diamond Finance November 16 </ i>

Based on customer needs, fast product update and technology iteration, let AWS All the way to the cloud computing the market, has been chased, but it is still not exceeded.

Since the 2006 Amazon Amazon Web Services (AWS), the cloud computing market is created. By 2008 Google, Microsoft and other scientific and technological giants have entered it, and then in recent years, Ali, Tencent and Huawei and other domestic cloud computing The rise of the company, and the company accelerated the enterprises under the early 2020 epidemic, all the way, Amazon AWS has been the industry leader.

In the first "cloud Ai Development Service Magic Quotation" report released by Gartner, 2020, in the rankings of technical forward-looking and execution (including language, visual, automatic machine learning Product assessment), AWS is once again placed in the highest position of the leader's quadrant, as shown below.

Enterprise occasionally is not too difficult to lead one time, it is difficult for long-term maintenance. I can't help but curiosity, how did AWS do? From its birth and development, "customer first, technological innovation, keep patience" Amazon company is guided by AWS.

1.Aws Birth

Review the birth of AWS, the exploration of technology, and accidental factors, and more inevitable development.

In the "One Network": Besos and Amazon Times, "Bessos," BEZOS occasionally "subdivided the IT infrastructure to the smallest unit, so that the programmer can be the largest Freedom to select and combine ", the inspiration of this IT resource allocation, start study how these minimum units are set.

2002, Bezos issued a command to the whole company, each product must open the program function module and data interface, and the module communication must pass through these interfaces. This API (Application Program Interface) is open in technology engineering, there is no other company, Amazon is the first. In the same year, with Tim O & # 39; Reilly occasionally meets Bezos aware of Amazon's IT infrastructure, calculation resources, etc. can be opened to third parties, then Amazon has quickly organized the developer conference, and released their own API for the first time. .

However, the large-scale API open has brought a lot of problems. Once the system is connected to each other, you need to go back and forth between multiple service groups; if the upstream service error will seriously affect downstream The function and performance of the service. Amazon has developed a large number of internal tools, monitoring and managing code, services, and improving the efficiency of solving problems. Unexpected gains, these tools can also greatly improve work efficiency, making the product upgrade iteration faster. If an engineer can complete the task of writing code to test, version management, deployment online, service monitoring, etc. With these good tools, Amazon decided to put its products and push to the market. So, with AWS.

Since the technological innovation, why the cloud service will be born in Amazon's e-commerce company instead of other science and technology giants at the time?

Due to the great volatility of Amazon's core e-commerce season, when the business is getting more and more growing in 2002, how to effectively configure enough IT infrastructure to become an imminent problem, The main business characteristics make Amazon naturally face such survival pressure. At the core competitiveness of BEZOS and Amazon executives discussed, they actually be good at operating IT infrastructure services such as calculations, storage, and databases. It can be seen that at the time, Amazon had the pressure and power required to develop cloud services, but the competitors did not, when Google was enjoying advertising, considering the future IPO; Microsoft has become the highest company in the US annual market value in 2002.

After the AWS product development is not a flat, the AWS team is controversial, and the leader at that time, the current AWS CEO andY JASSY said firmly: "We need to put energy On what we need to build, not doubt whether it will succeed. "

At the time of the Amazon board, it is not optimistic about AWS, because it looks independent of the main business of e-commerce, And the e-commerce is still losing money. In addition, Amazon has not been involved in corporate IT business, with the company's chief information officer or IT department has not contacted it, and has not reached a long-term software license agreement with the "500 wealth" company. BEZOS firmly believes that the value of AWS is to provide IT infrastructure services similar to hydropower. In 1997, he proposed that the core values ??of Amazon are "All around the long-term value. An important measurement standard for success is Whether to create long-term value for the shareholders. "Finally, BezOS strives to hold the public, stick to the online AWS.

Finally, in 2006, Amazon officially released the classic Simple Storage Service (S3) storage service, Elastic Compute Cloud (EC2) computing service and other AWS products. S3 is mainly for object storage, solving storage problems of non-structured data. EC2 mainly solves the problem of calculating resources, reducing acquisition, starting the server, and improving computational efficiency, reducing computational cost. AWS initial customers are mostly start-up companies, developers. At this point, AWS is officially born, step into the cloud computing market. It turns out that Bezos is very forward-looking, like Apple mobile phones to change consumer habits, AWS changes the way companies use IT technology.

In the next two years, when many startup companies are found in AWS, Google founder Eric Schmidt realize that Amazon has been under the next big game.

2. "Customer first" promotes the "AWS occupation", "Because of the Bezos forward-looking technical vision, then, from AWS to the present, More than ten years, you can keep the global cloud computing market leading, relying on products and technological innovation promoted by customers.

Cloud computing business, especially the IAAS and PaAS layers, due to its longer service chain, except for technical factors, to a large extent, depending on the service capability of the business team. This service feeds back to the technical team to determine the program and then implement the programs after the service team will begin, and then the program is re-implemented. Have to say, AWS has developed rapidly thanks to Amazon's deep-enacted service capabilities of "customer first".

can better understand and grasp customer needs, pain points, and is the premise of AWS to quickly expand customers. With the development of AWS business, customers develop gravity is also turned to traditional enterprises by early startups and developers. It is more concerned with early customers and more attention to cloud service and agility. Traditional companies pay more attention to IT security and original database migration. As a result, AWS launched the Virtual Private Cloud product in 2009, and the traditional enterprise is worried about migrating a large number of high-load job tasks to public clouds. After that, AWS has strengthened the creation of corporate service and safety compliance.

Enterprise services include migration, mixing architecture deployment, build virtual desktops, establish a corporate mailbox, etc., and the weight is migration (the original database is quickly migrated to the cloud without affecting the use). For example, AWS has launched Snowball, SnowMobile, supports the massive data of traditional large business customers. Safety compliance covers the entire business process, verified from identity ID, access management to key management, and then configure resources. AWS has released a series of related products such as secure assessment product Inspector.

In product flexibility, speed, safety, AWS always uses security as the first element, with a clear security concept, that is, customers can safely own and use data; coends security responsibility Conduct a cloud security threat. AWS has more third-party security and compliance certification than competitors, and has third-party security partners to provide customers with security solutions.

With the past product to polish and customer service experience, and few major safety accidents, AWS customers have further extended traditional enterprises to large enterprises, public utilities, government departments, overseas, and have established strong Brand trust.

"Customer First" Another practice is that AWS has a series of initiatives such as the innovation of the charging mode, optimize the product line, and reducing product costs, and continuously reduces the cost of customers using cloud services. In contrast to Apple's exceeding profit through high-priced, Amazon takes low prices to achieve profits through scale, Bezos believes that the lower product price and cost are better.

AWS CTO WERNER VoGELS mentioned that in the initial stage of building AWS, it is not only desirable to establish a real great new scalable technology to help companies achieve the Internet scale, but also want to be the most customer-centered IT on the earth. business. To this end, AWS uses a distinct toll mode, which is only necessary to pay for the service used, and there is no need to pay in advance. Previously, corporate customers reduce costs can only be achieved by signing long-term contracts with IT vendors.

AWS will also reduce customer costs through product upgrades. Take S3 storage services as an example. After more than ten years iteration, it has been upgraded to six products, suitable for different scenarios such as high frequency, low frequency access. On the basis of continuous refining and charging granulation, the comprehensive cost of customers can be greatly saved compared to early single products.

In order to further reduce product costs, Amazon embraces the technology optimization path of cloud and core. In 2018, AWS released the first self-developed ARM architecture cloud server CPU Graviton, the first cloud AI chip Inferentia. Peter Desantis, Vice President of Amazon's Global Infrastructure and Customer Service, said that the use of the new CPU can reduce the price of the AWS virtual machine to reduce the price of 45%. In addition to increasing the technical competitive barriers, it is also to give low-cost solutions. After all, the reasoning workload for machine learning requires the entire GPU, very expensive.

low cost products are attractive, but only relying on low cost can never make up for products or functional defects. Customers really want to "better use, faster, safer" products, while Amazon is done. It turned out that every product of AWS was the Amazon's internal team, and it was proud of the promotion. After using countless times by the world's top team, the product demand is quite clear, the function is relatively improved, which is the ultimate application of the internal customer experience is the ultimate embodiment of "customer first". This is one of the reasons why AWS is rapidly rising and rapidly developed; it is also considered to be a Microsoft, and Google is difficult to surpass the reasons for AWS.

On the basis of customer needs or feedback, AWS maintains fast product and function iteration, technology updates for a long time. Wall Street Analyst Jerries said that there is a possibility that no competing company can be compared to the innovation of AWS. Over the years, the number of new features or services launched annually, in 2018, there are 1957 online, with average of 5 new features or services every day.

However, some questioning sounds have occurred for fragmentation of AWS products. The huge AWS products have bred to all aspects. It is not easy for customers to choose the right product for specific scenes; for AWS sales and distributors, it is not easy to concise to the customer; for ecological partners, it is not easy to keep up with the product update. However, for professional developers, it seems that this is not worth mentioning, and it is basically possible to find a suitable product through search, technology circle exchange.

3.aws' innovation and re-architecture

is facing such challenges, so far, on the global cloud computing market, AWS is still exciting. Amazon's financial report has shown that AWS revenue continues to grow, and the quarter reaches $ 11.6 billion, a year-on-year increase of 29%.

Data Source: Amazon Finance, USA Research Office

Although AWS still maintains a good performance, after more than ten years of development, the market environment of cloud computing is completely different. Customers, competitors are more mature, and the market competition is extremely fierce.

After long-term development of public cloud market, more and more customers turn to cloudy deployment, using multiple cloud services; more and more customers use hybrid cloud strategies, using public clouds and private clouds. According to the 2019 Rightscale survey, 123,691 people have been interviewed, 84% use cloudy platforms, 58% of users like mixed cloud deployment methods. The customer market is turning from a single cloud computing service to a cloudy strategy, from the public cloud steering the hybrid cloud strategy.

AWS Reconstruct the IT industry, fundamentally changed many large companies' business trajectories, such as Microsoft, Google, Oracle, IBM, etc., they all strive to catch AWS, hoping to expand the market I have a cup. The industry generally believes that the transformation of hybrid cloud strategy is more favorable to Microsoft, and the transformation of cloudy strategy is more beneficial to Google.

At the end of 2019, the US Department of Defense was 10 years, a heavy contract worth 10 billion US dollars (JEDI) gave Microsoft (although due to Amazon's protest, the contract was called in February this year). Microsoft Azure Higher Tube John Chirapurath said that many large companies use Azure to choose Microsoft's reasons for the Ministry of Defense, namely a hybrid cloud setting with depth data analysis and security. FuturumResearch analysts pointed out that the award of JEDI contracts allowed the market to see the opportunity to apply pressure to AWS to AWS. At present, only 20% of business workloads are in the cloud, although AWS has the first-handed advantage, but it is not as deep as Microsoft in the enterprise. The next four and five years will see the gap between the two sides continued to draw.

Google Cloud Computing Services General Manager Will Grannis said that customers have turned from a technical leasing strategy to build their platform and app, and Google has established many very successful platforms such as Android and Chrome. Google Financial Report showed that the cloud business camp in 2020 increased by 45%, mainly due to its data processing and analysis advantages, and acceplifies to cloud computing transformation, cloudy strategy during the epidemic.

IBM CEO Fletcher Previn said that large companies want to implement cloudy strategies outside of public options, they want to avoid being too dependent on a supplier, and AWS may be more difficult.

Facing the customer market change, competitors are frequently generated, and AWS is still technically innovation and layout in its rhythm.

In the mature field of infrastructure, calculations, AWS continues to introduce new technologies, continuously strengthen competitiveness in terms of stability, reliability, security, resource utilization, etc., which makes it "longboard" longer .

Recently, AWS announced a comprehensive listing of Amazon Braket. This is a fully managed quantum computing service that provides researchers to explore and construct quantum algorithms for researchers. Like Microsoft, Amazon does not build its own quantum computer, but cooperate with quantum computing hardware manufacturer D-Wave, IONQ, and RiGetti, allowing customers to call their own quantum computing system through cloud computing. Customers can be designed from zero, or from a set of pre-built algorithms. After the algorithm is built, you can select the simulator provided by BRAKET to test, troubleshoot and run algorithms. Customers can also run a mixing algorithm that combines quantum and classic computing systems. In addition, Amazon also announced the establishment of AWS quantum computing centers and AWS quantum solution laboratory, where the quantum solution laboratory will be open to customers, requiring quantum computing experts to assist customers.

In fact, BezOS has been with the US Department of Defense, Central Intelligence Agency as early as ten years ago, and the Central Intelligence Agency has been invested in quantum chip research and development company, which is very forward-looking to lay out quantum calculations. TRACTICA researchers predict that by 2030, the annual total annual income of the company's quantum computing market will reach $ 91 billion, while only $ 111.6 million in 2018. Gartner said that quantum computing is one of the most potential subversive technologies in the next five years, will benefit from quantum calculations.

At the same time, AWS continuously invests in competitive hotspots such as machine learning, artificial intelligence.

In the past three years, AWS will release a large number of machine learning products every year, from the platform-level Sagemaker series service, simplify the construction, training and deployment of the model; to the application level for more than a dozen services, popularization Machine learning tools can be used in small white.

One of the most popular products of artificial intelligence, the access equipment has exceeded 100 million units, and the annual dialogue has increased, and 90,000 "skills" or tasks can be implemented in 2019. The follow-up ability of the execution is constantly improving. It can achieve such an innovation because it is because of the use of AWS. As a team in Amazon, a very mature team, Alexa's experience, opinions and recommendations have greatly promoted the improvement and improvement of AWS products.

Bezos mentioned that in the early days of Amazon, machine learning is the core of product recommendation function, and AWS has a front seat in the cloud computing field. The ech of 2014 has been driven by Alexa, while Alexa is based on AWS. This series of products, technology gradually formed a Amazon Ecological Economic Empire with "flywheel effect".

Bezos said in 2019 to shareholder letter, we want to create a kind of builder culture, a group of curious people, explorers. They like to invent, even experts, still hold beginners' mentality. This culture helps us approach those major, difficult to implement opportunities with modest attitude, we believe that success can be achieved by iteration: inventions, start, reinvention, re-start, re-come again, once again. The road to success is never straight. It is relying on the builders such as Amazon, and AWS has always been continuously innovative and has been successful.

AWS CEO ANDY JASSY, our goal is to be all infrastructure technology platforms that want to transform enterprises, invented and building a better customer experience, continue to grow. "IT is not important" mentioned that IT capabilities will no longer be the focus of enterprise differentiation competition, and truly let a company and unique, how to build unique ability to customers. AWS is born due to innovation, and is enabled for innovation.

Although cloud computing is changing everything, Gartner said that the cloud service accounts for 5.6% of IT total, only 20% of business workload migrates to the cloud. This is just a start.

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