Amazon’s cloud, by one analyst’s estimate, makes for 1% of all internet traffic—a stat that’s frighteningly huge. The report lists a number of high profile clients and customers that leverage Amazon’s cloud infrastructure services: Dropbox, Netflix, Reddit, Pinterest, Instagram, Zynga—just to name a few.
Should anybody be worried? Sure. But this kind of dominance among the players involved in the various cloud spaces (and this space that Amazon is in, is a difference space that, for example, Google Apps is targeting) is not surprising. All companies that are in this game and race are vying for control, and Amazon just happens to be a super practical solution to most startup companies that can’t afford to lay out huge swaths of capital in fell swoops, for infrastructure such as that, that Amazon can provide on a piecemeal basis.
This space is super valuable though, just think of the numbers: over a billion internet users worldwide, with another billion slated to come online in our lifetime: the potential for business is social impact is mind blowing—a potential that isn’t lost on big caps such as Amazon, Google, Microsoft and the rest.
But in the same way that Eric Schmidt didn’t want anyone outside a select few at Google to find out how much money’s being made through AdSense, Amazon is being completely opaque—save for what’s said in press releases and 10K financial statements—about how much they’re really making off of their cloud ventures.
It doesn’t even matter; the simple arithmetic of the potential’s huge.
The biggest companies in history fought tooth and nail to conquer certain markets, such as the U.S. market, or “Europe,” or “North America.” But the size of those markets look like narrow niches compared to the numbers that the internet can provide—and provide with immediacy. You can tweak the numbers at the margin, but the arithmetical foundation of this potential is obvious.
What do you think of the potential for one company to facilitate (or even control) even a few points of internet traffic worldwide? Is this a dangerous thing? Should this be on legislator’s radars, or should society just wait for something big to happen, in order to react? Chime in below.