Story image

How colocation providers can follow Amazon’s lead & create lucrative new IT offerings

25 Aug 2017

In the data center industry, we hear about Amazon Web Services (AWS) all the time, as the company is clearly one of the biggest players in the space and is, without question, an innovator in data center design and operation.

Today we take that at face value.

And we’re talking about a company that started with a far more humble idea: selling books.

It’s worthwhile for colocation providers to consider how AWS evolved: from the IT infrastructure Amazon built up over time to sell books and, eventually, just about everything else.

At some point, Amazon realized it is fundamentally an IT company and the expertise it developed over the years in how to build and operate data centers was a core competency.

So much so that other people would pay to get a piece of it. And they do – in droves.

Amazon’s story is far from unique and has a long history in IT circles. An early example is SABRE, the reservation system developed by American Airlines in partnership with IBM.

It was so successful that American eventually spun SABRE out to become its own company, selling reservation services to other airlines, hotels, car rental firms and the like.

Later on, the Travelocity web site was spun out of SABRE (and eventually acquired).

Another more recent example involves Amazon’s founder, Jeff Bezos. In 2013, Bezos bought The Washington Post Co., including its flagship newspaper.

Since then, he has been infusing the company with heavy doses of technology, including software that matches online ads to reader demographics and preferences, according to this story from NPR. The software is so good, the Post has sold it to 22 other publishers, NPR reports.

The point is, IT expertise is valuable – and colocation providers have significant IT expertise.

It strikes me that providers have an opportunity to follow in the footsteps of the likes of Jeff Bezos and launch new lines of business that capitalize on that expertise.

Article by Greg Jones, Schneider Electric Data Center Blog 

Inspur announces AI edge computing server with NVIDIA GPUs
“The dynamic nature and rapid expansion of AI workloads require an adaptive and optimised set of hardware, software and services for developers to utilise as they build their own solutions."
Cohesity and Softbank partner to offer data services in Japan
The joint venture asserts it will enable Japanese enterprises to back up, store, manage and derive insights from all of their secondary data and applications.
ADLINK and Charles announce multi-access pole-mounted edge AI solution
The new solution is a compact low profile pole or wall mountable unit based on an integration of ADLINK’s latest AI Edge Server MECS-7210 and Charles’ SC102 Micro Edge Enclosure. 
How Dell EMC and NVIDIA aim to simplify the AI data centre
Businesses are realising they need AI at scale, and so enterprise IT teams are increasingly inserting themselves into their company’s AI agenda. 
Huawei commits to Hong Kong with new cloud tech
Hosting its 2019 Cloud Summit in Hong Kong, Huawei announced it is throwing significant investment into region.
Time to build tech on the automobile, not the horse and cart
Nutanix’s Jeff Smith believes one of the core problems of businesses struggling to digitally ‘transform’ lies in the infrastructure they use, the data centre.
Cloud providers increasingly jumping into gaming market
Aa number of major cloud service providers are uniquely placed to capitalise on the lucrative cloud gaming market.
Intel building US’s first exascale supercomputer
Intel and the Department of Energy are building potentially the world’s first exascale supercomputer, capable of a quintillion calculations per second.