AWS Outage Exposes Cracks in Amazon's Cloud Lead

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00:00Just give me the headline of your story.

00:02The headline of the story is that Amazon is essentially no longer the only game in town.

00:06In cloud computing, they've got real credible rivals, you know, down to Oracle and Google.

00:10Five years or so ago, it was only Microsoft that was knocking on the door.

00:13And now you add on all this AI workloads, and that's not a business that AI,

00:17that Amazon rather, seem to be leading in.

00:19Just for context, though, how successful does it remain?

00:22How much market share does it still own?

00:24And what are we starting to see in terms of inroads?

00:27So on traditional cloud, it's something like 38%.

00:30Rickens Gartner, that's down from about half of the market, you know, five or six years ago.

00:35Folks have made inroads.

00:36You know, there's Microsoft, there's GCP, there's Oracle.

00:39And a lot of the threat there is just some of the services that Amazon pioneered.

00:43Like, those are leaning toward commodities.

00:44Other companies can offer you a similar package of goods.

00:47Right.

00:48Matt, when we broke the story about Anthropic using TPUs,

00:51Google stock up, Amazon stock down.

00:53How have you reflected on that in the story?

00:56Also, you really can't overstate the importance of Anthropic to AWS.

01:00You know, they're a marquee artificial intelligence customer.

01:03They're helping kind of co-develop Amazon's artificial intelligence chip called Tranium with them.

01:08So the fact that they now have, you know, what really looks like a hedge or an option

01:12to go more toward Google should they choose, should they like the tech results better,

01:16that is a real risk or a potential risk, rather, for Amazon's AI business.