Interview Synopsis

AWS Redshift – Cloud Data Management Market

  • Public Equity
  • TMT
  • North America

“To understand the cloud space you need to understand that data,” an industry executive told Third Bridge Forum. "It’s really about where the data is." Amazon Web Services (AWS) has invested heavily in its database solutions in recent years and in the Forum Interview the former SaaS leader at AWS discussed cloud data management trends, including AWS’s Redshift and related offerings such as DynamoDB. 

Widespread serverless adoption among enterprises in the next five years

The expert outlined RDS, Aurora, Redshift, DynamoDB and ElastiCache as AWS’s five core offerings in cloud database management. Although RDS currently contributes the most to revenue, usage of the other offerings is expected to increase as AWS integrates them into “higher-order solutions”. Redshift, a data warehouse product, has “come a long way”, according to the Interview. AWS has made it a “viable option for high-performance workloads”. 

The Interview also discussed the trajectory of serverless, with widespread adoption across enterprises expected in the next five years. “The question is how quickly can AWS or Azure, or anybody else, encourage their enterprise customers to move workloads from a more traditional deployment to serverless?” The specialist said AWS currently leads in serverless adoption while Azure has not integrated it into its platform as fully, and Kubernetes is not a market differentiator for Google Cloud Platform (GCP). 

AWS’s AI and machine learning capabilities were also on the Interview agenda. We were told adoption is coming primarily from out-of-the-box solutions, as most companies do not have the resources or expertise to recruit a data science team. “AWS in general has done better at that,” the expert said. Although Google is better known for its underlying machine learning, “that only matters to a small subset of the population”. 

The expert also shared their views on how AWS’s solutions are positioned vs those of Snowflake, as well as Redshift vs Azure, and AWS’s positioning vs GCP. Among their insights was that AWS is maintaining cooperative relationships with Snowflake and MongoDB, valuing consumption over competition in light of its partnerships. Meanwhile, Snowflake remains the leader in scalability, multi-cloud architecture and flexible pricing, but serverless adoption is narrowing the scalability gap between AWS.

Overall, the specialist was bullish on AWS’s outlook, noting that growth is unlikely to look the same going forward as previous years. AWS will continue to upsell its base and grow in line with the core market thanks to its presence across many sectors. The future, we were told, is bundled solutions that make it easy for enterprises to migrate to the cloud. However, it is “going to be a tooth-and-nail fight. Nobody’s a clear winner here.”

Click here to access all the human insights in Third Bridge Forum’s AWS Redshift – Cloud Data Management Market Interview.

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The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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