IBM Vs Amazon: The Cloud War Started by Big Blue

Amazon is very much well known as a retailing store to many. Many of you may be anxiously raising this Question in your mind, to know, what a retailer store has done to IBM, a big tech giant ever, which has been servicing the world for so many years. Yes, the thing has gone something this way. It’s like before big brother IBM take one byte from Celebration Chocolate, Amazon has just snatched away that one. Interesting!!!

Recently, IBM has lost a big amount, $600 million contract deal because of Amazon. This is the celebration chocolate, we are talking about. Amazon Web Service (AWS) snatched the cloud service deal from IBM and signed the contract with CIA (Central Intelligence Agency, US). They have got the rights to build private cloud for this American spy agency. Terming it “Snatched” will be very much unfair, we think. Amazon Web Service has got what they are truly worthy of. In return, IBM got red faced terming it as very much unfair; running Advertisement, showing IBM is the top leader in Cloud Computing Sector, even going for a comparison with AWS inside the advertisement. Fine! Every action has a Re-action. The fueling re-action taken by IBM signifying, it has got a painful wound.

amazon cia

According to a report by Government Accountability Office (GAO), US, top five companies: IBM, AT&T, AWS, Microsoft and another unidentified firm appealed for the same contract. And in the bid process, Amazon was awarded the deal on Feb 14, 2013. Furious IBM disputed the issues, claiming the evolution has not done in a right way. It went against CIA’s (Central Intelligence Agency, US) decision in a court, but the Court slapped down the claim, mentioning IBM is inferior. Even mentioned IBM has tried to manipulate the situation, to get the contract. Finally IBM lost even in court!!!

IBM, lost its fascinating $600 million contract. It’s too easy for us to read out. But, of course not for IBM. The major ibmheadache for IBM is its net profit growth going down in comparison to previous. In this kind of situation, IBM definitely will not want to lose the contract. The $600 million dollar contract gave a tight headache to IBM.

IBM , very well know the importance of cloud computing in coming years. To win the lost battle in U.S , It is running an Advertising Campaign in India. In the advertisement, IBM claiming to have more than 2.7 lakh customers than Amazon on its Cloud platform.

What IBM has included in the Advt:

  1. IBM Cloud support more than 2.7 lakh more websites than Amazon
  2. IBM’s cloud service is high valued, open and reliable.
  3. SoftLayer Technologies [A rival of AWS, bought by IBM worth Rs $2billion] gives IBM a big cloud jump-off point.

Check out a recent print ad by IBM against AWS



In recent ads in TV, Online and print media, IBM mentioned itself as the top cloud leader aiming to tout $1billion in third quarter cloud revenue to beat AWS. This kind of anti-AWS campaign by IBM may boost AWS to go more in Enterprise vendor. The most common factor signaling success of AWS on cloud platform is, they are more user-focused. We wish, they will stick to it to continue their success saga to stay ahead of others. In a reply to such Anti-AWS campaign, Andy Jassy, head of AWS simply replied, “IBM was confusing Customers and simply going up and down”. They have stopped commenting now on this kind of aggressive advt by IBM. But AWS dint forget to mention this issue in a keynote in AWS: Invent 2013 conference.

aws reinvent

This cloud war will go on for a long years like Apple vs Samsung tech war.  But It’s true that, IBM must be realizing how an e-commerce retail store breaking the walls to spread its wing as a competitive provider of information technology. Amazon started its journey as an online book seller. Just within a few years, It speeded up its services entering in to almost every market. Though Amazon never shows AWS results, but Wall Street believes, AWS growing even faster than its retail store.



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One response on “IBM Vs Amazon: The Cloud War Started by Big Blue

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