Amazon Loses Zygna

February 27, 2012

Fancy talk aside losing a big customers generates heart burn. Wired Cloudline reveals that “Zynga Gives Amazon Cloud the Slip.” Game maker Zynga has analyzed its needs and, though it does not plan on dropping Amazon Web Services (AWS) entirely, has determined it can do better by building its own platform, zCloud. The article reports:

“What is a surprise is the dramatic shift away from Amazon for cloud services. Amazon is estimated to have provided 80 percent of cloud computing services to Zynga in the early days, and now delivers a mere 20 percent. . . . [Zynga CTO Allan Leinwand] told GigaOm the move should not be seen as knock on AWS, because zCloud was built and optimized for the unique workloads of its interactive and graphics-intensive games.”

Hmm. . . perhaps. However, we see another possible factor: Amazon’s price increases seem to be unappetizing when there are lots of tiny incremental charges. Perhaps such inflation will spur more companies to create their own clouds.

Zynga has profited mightily by bringing some fun into the social networking boom. The company prides itself as giving people around the world “permission to play”. Now that’s a cheery business model.

Stephen E Arnold, February 27, 2012

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