AMAZON ANNOUNCED A NEW AGREEMENT WHICH COULD THREATEN MICROSOFT

Amazon recently held the largest technology conference in the field of cloud computing in Las Vegas. In this conference, Amazon announced relationship with Rackspace, a great shock to the industry, along with the giant Microsoft.

Also as reported by The Wall Street Journal, Rackspace would work with Amazon and helped enterprise customers in the field of technology switch to using cloud computing services provided by Amazon.

Rackspace is a cloud computing company based in Texas. It is worth noting that earlier this company made a cooperation agreement with Microsoft. Hence, the new agreement with Amazon will be the direct attack against the software giant.

The importance of the new cooperation agreement

This is an important milestone in the development history of Amazon when it cooperated with a major partner to aim at business customers although it accounted for 29% market share of cloud computing and Amazon Web Services (AWS) collected about $ 7 billion in annual revenue.

But Amazon's customers are mainly ordinary users and the newly formed startup. Despite the successful startups as Netflix and Airbnb, AWS was never much appreciated and used by large businesses. Instead, the big guns were trusted products and services from IBM as well as Microsoft.

Therefore, the cooperation agreement with Rackspace to aim at increasing the quality of products as well as cloud computing services and attract big business customers is extremely important.

From foe to friend

Amazon and Rackspace used to be two direct competitors in the field of cloud computing. Rackspace introduced a project called OpenStack technology to help many companies no longer depend on Amazon services.

OpenStack is a cloud operating system. Enterprises can install the operating system in their data center, and then can choose between multiple cloud service that OpenStack integrates, move data and applications in these services easily without sticking with a single service provider.

This project was very successful and offered and supported by many companies such as HP, Cisco or Redhat. Then, Rackspace announced it would become a reseller of cloud computing services for Microsoft.

Now, this cloud computing company would cooperate with Amazon. After realizing that Amazon Web Services is growing and becoming more attractive, there have been many large enterprises paying attention to AWS, such as Yamaha.

Amazon has refused to comment on the cooperation agreement with the opponent in the past. But the new alliance could be a threat to many other giants, including Microsoft.