Enterprise data centers are on their way to becoming rare beasts, as nearly every enterprise is going to move nearly all their computing to the cloud, Amazon Web Services CEO Andy Jassy said Tuesday.
“In the fullness of time, whether it’s ten years or 20 years, very few companies will own their own data centers, and those that do will have a smaller footprint than they have now,” Jassy said during a presentation at the AWS Summit in Washington, D.C. and streamed live.
The transition will lead to qualitative changes in the enterprise, Jassy said.
Amazon, which has used razor-thin margins to undercut rivals, is susceptible to the same competitive pressure because of its fat AWS profits.
“Your margin is my opportunity.”
It’s a quip often attributed to Amazon CEO Jeff Bezos to explain his zeal for high-volume sales at teeny-to-nonexistent profits. It’s ironic, then, that in Amazon’s cloud business it is Bezos’ margin that is providing an opening to rivals like Google.
Amazon’s Lofty Profits Open Cloud to Rivals [Shira Ovide / Bloomberg]