Brad Feld - Amazon CritiqueFor years now, Amazon web services have been providing best cloud computing platform on a large scale. Some people still believe that the online retailer is continuing to do so, and will be carrying on the regime for years to come.

On the other hand companies like Google or Microsoft are in their booming period and can give AWS (Amazon Web Services) a hard time. What we need to see is if AWS will continue to work with its current policies and strategies, or will it be flexible enough to strengthen its game in this race of cloud computing.

One of the most prominent critics of AWS is Brad Feld, who is Foundry Group’s managing partner and Tech stars Co-founder, and he devised a metaphor to clearly explain the age old situation: “A snake will always bite because it is in its nature to do so.”

While explaining this during his appearance in the Structure Show, he illustrated how a few major companies have made changes in their infrastructure to better suit the competition. He justified the three prominent ways in which cloud providers can stand out from their rivals, and become favourites for their IT infrastructures.

Brad Feld criticizes Amazon Web and Cloud Services in a very logical manner

Feld explained that just as the scale continues to increase for a traditional service, the elements revolving around the business get highlighted, such as its operational excellence and the companies’ infrastructure. With Amazon, he said, you might be giving yourself a blind-eye with cost savings, because people are eventually required to manage all that, and it will become evident later down the road.

Companies are seen to have shifted to other applications such as Soft Layer, Rackspace and other options where cloud connectivity remains, but control management is easy on the resources. However, most of them are installing their own gear in Colo datacentres and the results are quite satisfactory.

When you get to the other side of it, it’s just awesome, because all of the things that you’re struggling with in terms of direct control is gone, and on just a raw economics perspective …

we’ve seen as much as 20 percentage points margin uplift … which probably translates into 33 percent uplift in gross margin. Almost all of it falls straight to the bottom line.”

On the other hand, Feld also underlined Amazon to be one of the lowest-cost providers. And it can continue to be so by making sure that it prevents its economy from rapid obstruction by Google’s strategies.

The second bold point that Feld made was finding a middle ground between self-service and expensive service.  Feld agreed to the fact that AWS has improved its services over the years, but growing companies had to pay a hefty cost for it, literally. He debated that now-a-days, start-up executives look up to other companies when credit costs or compensation cost after an outage are under question.

Reputation management, especially in a market where reputation matters, is another one of the winning points, he narrated.  Complaints add up to a company’s reputation and it starts to struggle.

Since Feld was involved with Microsoft in the earlier years, he knows too well how a company can fall prey to this menace of struggling reputation , suddenly after having a clean slate, for which AWS has been accused of. Larger companies cutting off their smaller partners for merely greed or customer demand to sell cheaper and inferior products is certainly in the best interest of the company.

You should be careful, because we had that corporation development conversation with Amazon, and here’s how it went,” Feld continued. “And two months later they came out with a competitive product that was inferior and stuff like that, but it didn’t feel very good to us to go spend a whole bunch of time with them and tell them everything we’re doing under the guise of maybe a deeper partnership, and then watch them come out with something that competes with us.