Marshall van Alster, MIT Digital Economics Initiative Researcher and Richard Schramlenzi, professor of economics at the Massachusetts Institute of Technology (MIT), have been leading the way in forecasting that the dominant and leading platform will lead the future. In particular, cloud is the platform for converging new technologies such as artificial intelligence (AI), Internet of Things (IoT), big data, and block chain, which are key keywords of the fourth industrial revolution.
Traditional solution companies that have led the IT market in their own past are being sucked into the ecosystem of cloud infrastructure services companies such as Amazon Web Services (AWS) and Microsoft (As). This is expected to accelerate further in 2018, and in the long run, analysts say that solution vendors may lose their market leadership to platform companies.
According to industry sources, AWS offers more than 4,200 SaaS (Service-Type SW) solutions developed by its 1300 companies in its Cloud Marketplace and SW and security along with hardware, and so on.
According to market researcher Gartner, the global IaaS public cloud market in 2016 was USD 22.1 billion, up 31% from USD 16.8 billion in 2015. Solution companies are launching solutions for the cloud as companies move toward cloud infrastructure to streamline IT system operations and management.
Solution companies are required to compete with other solutions for customer choice in the cloud market, as well as with global IaaS (service-oriented infrastructure) providers such as AWS and Microsoft, who have the platform operating rights. IaaS operators are able to derive through menu and recommendation functions on the platform.
Symantec, for example, the global security leader, has a strategic relationship with AWS and Microsoft. The company is offering its antivirus product `Norton` to more than 50 million customers through MS Azure, and in November of last year it signed an agreement with AWS to become a strategic security SW provider.
In fact, AWS categorizes popular categories such as operating system, security, networking, storage, and database (DB) in the marketplace and recommends major solutions. Currently, eight of the major SaaS products recommended by AWS are: ¡â Elastic Cloud (Log Analysis) ¡â Cloud InDeer (Disaster Recovery) ¡â Symantec (Cloud Security) ¡â NetApp (MS Office 365 Data Protection) ¡â Send Grid (Router management), Ubuntu (Linux management), and ANNET (data transfer).
"While IaaS vendors, including AWS, are increasing their own SaaS offerings, there is still a great demand for customers to use their existing and proven solutions," said one AWS partner at a SaaS partner.
AWS has developed dozens of proprietary solutions, including database management systems (DBMSs), content delivery networks (CDNs), Linux, security, storage, digital marketing, And quality. In addition to AWS, major IaaS providers such as Microsoft, Alibaba, and Google are showing similar moves.
The Naver Business Platform (NBP), a provider of domestic IaaS, also released its own service in December, including its own DBMS `Cloud DB Predisys` based on open source `Redis`. It provides automatic `fail-over` functionality not provided by existing MySQL or Redis, and it provides stable service through automatic recovery even in case of failure.
If this trend continues, the analysts argue that solution companies will be less influential in the market. For example, Oracle, the world`s largest DBMS market leader, announces a sense of crisis every year when Larry Ellison points out the AWS DBMS service quality issue in the public eye.
"As the service landscape of big global cloud companies is expanding, it is time for SW companies to expand their disruptive territories beyond their existing business boundaries in order to survive in the marketplace," a cloud industry expert said.
By Lee Gyung Tak kt87@
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