|AWS vs. Azure||2021|
|Microsoft Intelligent Cloud||$60B|
Amazon AWS is one of the most exciting businesses of the last decade.
Born as a side effect of making an order to the jumbled mess that had become Amazon’s infrastructure.
AWS has become a tech giant on its own, contributing to Amazon’s profitability.
In fact, if you were to spin off AWS from Amazon, not only would the e-commerce company be highly unprofitable, but its market value might be cut in less than half!
In the last decade, AWS has become a juggernaut.
It took years for competitors like Microsoft to be able to compete against AWS.
How come prominent players like Microsoft and Google couldn’t compete with AWS for years?
– Early timing.
– Bezos played a trick on his competitors.
And Jeff Bezos was pretty smart about it.
What was the trap he employed?
Indeed, when AWS officially launched, it was priced as a utility.
AWS rolled out its first mass-market product, Simple Storage Service, or S3, on March 14, 2006.
That is the official date of birth of AWS!
Still, in 2014, Steve Ballmer said to the Charlie Rose show:
“In my world you’re not a real business until you make some money.”
Yet, instead, AWS would turn into the most profitable business in the world.
Yet, today the cloud war is played on a different playground.
Indeed, computing power today is all about empowering the next generation of AI companies.
That is, for instance, why Microsoft already placed a bet of over $1 billion in 2019 on OpenAI!
And by October of 2022, Microsoft was in talks to invest even more into OpenAI.
There is an explosion of commercial use cases on top of it. In the end, the generative models that will have more apps built on top might be the ones that will dominate the AI industry.
Whoever can capture all that GPU consumption generated by the AI industry!
Whereas instead, cloud players like Microsoft, Amazon, or Google control the main AI models that power up the AI app economy, they can force these businesses to pay for GPU on top of their cloud infrastructure!
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