Google Versus Amazon: And the Price War?
December 2, 2016
I read “How Google Is Challenging AWS.” The factoids and the analysis weave together the cloud-smart software boomlet. Both companies want to generate big money, be recognized as leaders in artificial intelligence, and dominate the “cloud.”
There are some differences between the two outfits. The Google is a company based
Here’s the passage I highlighted:
To be sure, Google’s success is not assured: the company still has to grapple with a new business model — sales versus ads — and build up the sort of organization that is necessary for not just sales but also enterprise support. Both are areas where Amazon has a head start, along with a vastly larger partner ecosystem and a larger feature set generally. And, of course, AWS has its own machine learning API, along with IBM and Microsoft. Microsoft is likely to prove particularly formidable in this regard: not only has the company engaged in years of research, but the company also has experience productizing technology for business specifically; Google’s longstanding consumer focus may at times be a handicap. And as popular as Kubernetes may be broadly, it’s concerning that Google is not yet eating its own dog food. Still, Google will be a formidable competitor: its strategy is sound and, perhaps more importantly, the urgency to find a new line of business is far more pressing today than it was in 2006.
The MBA analysis covers the waterfront: References to trial balloons, buzzwords, and Google’s techno-prowess.
I did note one omission: The old-fashioned concept of price war. Google depends on advertisers to funds its attempts to generate new revenues, conquer unspoiled markets, and achieve Sillycon Valley greatness. Amazon, on the other hands, gets people to pay Amazon to reduce its administrative burden for its plumbing. Customers buy products and services from Amazon, which is a reworking of the big box store into a digital WalMart.
Yet the price war appears to be simmering. Who will back their horse to the finish: Advertisers who want a measurable return on ads in the murky, somewhat opaque world of online clicks? Customers who want to buy laundry detergent?
Harrod’s Creek remembers the gasoline price wars of yore. We remember them fondly. Perhaps the battle between Sillycon Valley and Seattle will evoke similar thoughts a few years down the line. Disruptions can be fun too.
Stephen E Arnold, December 2, 2016
Stephen E Arnold,
Comments
-
- Subscribe to Beyond Search
Feature archive
News archive
-
