Amazon Cloud Technology is urgent, hidden crisis in Huayun service

Edit | Yu Bin

Produced | Chaoqi.com "Yu See Column"

Speaking of Amazon, many people think of the world's most well -known e -commerce platform, the famous unicorn in the United States. But not many people may think that Amazon is still the world's largest cloud service provider.

In 2021, Amazon's giants such as Microsoft and Google continued to rank among the world's largest cloud service providers. But behind the scenery, Amazon Cloud Technology, as a cloud computing service platform owned by Amazon, provided cloud services is not as beautiful as it looks.

The cloud service of Amazon Cloud Technology in China will also be in the predicament because of fierce competition in the local market. People in the industry generally believe that the world's largest cloud service providers in the world are likely to fall quickly in recent years due to the accelerated changes in the Chinese cloud service industry.

The embarrassing global boss, Amazon Cloud Technology is trapped in China

Although Amazon Cloud Technology is expensive to serve the global cloud, there are data proved that in the domestic market, Amazon's cloud services have not been carried out so well.

First of all, Amazon's cloud service technology is very good, but it cannot completely open the gap with competitors. In China, traditional Internet manufacturers such as Alibaba, Baidu, Tencent, and Tencent have also been cultivating cloud services for many years. It is not technically behind Amazon.

Therefore, Amazon has always used a low -cost strategy to run its own cloud services in China. Many people in the industry claim that although Amazon's cloud services are good, there are no giants' shelves. On the contrary, the cost performance is extremely high.

But strangely, such a high cost -effectiveness does not have a particularly good market return. If you don't count the business. Amazon's market share in domestic cloud services is only 6.5%.

This involves another issue of Amazon Cloud Technology in the Chinese market, that is, over -reliance on the business of going to the sea. This is because Amazon, as an overseas giant, has a huge innate advantage of going to the sea. On the other hand, as the blessing of the industry's boss, Amazon Cloud Technology is full of endorsement of the brand, and it also provides them with domestic enterprises to go to sea.

Therefore, when there is a bonus for going to the sea, Amazon Cloud Technology's market share in China will soar to 26.2%. Nearly 20%of them are business in the sea.

However, during the epidemic period, the instability and uncertainty of the business of going to the sea are very high. On the one hand, the continuous epidemic has brought huge challenges to the operation of the company.

Secondly, under the epidemic, trade protectionism prevails, and companies going to sea are very easy to encounter foreign policy blows. These factors have become the instability of Amazon Cloud Technology in China.

Third, Amazon Cloud Technology will face the challenges of Chinese competitors. The competitors of Amazon Cloud Technology are land snakes such as Alibaba, Baidu, and Tencent. Not only do they have technical advantages that can compete Amazon, but also the platform advantage that Amazon cannot compare.

Relying on Alipay and Tencent, Alibaba can enlarge its platform advantages by relying on WeChat platforms. Baidu's Baidu Cloud market share is even more ahead of the year, and it already has relatively stable user habits.

Amazon's soil and water on e -commerce is not acceptable to expose huge problems at this time. The failure of Amazon e -commerce in China has led to Amazon's cloud service lost a entrance to China.

As a result, Amazon's cloud services cannot be carried out by e -commerce platforms, nor can it form a huge user base on e -commerce with a strong mass foundation.

This is also the predicament of Amazon in China. The failure of e -commerce in China has led Amazon Cloud Technology to lack an important development foundation in China. At the same time, the failure of e -commerce in China will bring other problems to the development of Amazon Cloud Technology in China.

Unparalleled cloud, Amazon's predicament in China

On June 22, 2022, Amazon China announced on July 18 this year to stop providing seller services for third -party sellers. In the future, cloud computing, Kindle and cross -border trade business will be retained.

In fact, the rumors of Amazon's withdrawal from the Chinese market have long been upright, and many people in the e -commerce industry also speculate that Amazon will gradually withdraw from the Chinese market. Amazon's actions have confirmed their guess.

They have such speculation are not empty. The development of Amazon's e -commerce business in China in recent years can be described as tepid, and there is no international e -commerce giant at all.

This is related to Amazon's strategy in China. Amazon did not spend a lot of money with other e -commerce giants in China, but chose a very Buddhist business method.

In addition, Amazon has a serious problem in China in China.

First, Amazon Cloud Technology's pre -sale and post -sale and post -sale and post -sale system is incomplete, and the evaluation system is defective, which has also caused Amazon Cloud to service in China to be unable to establish its reputation in China.

Secondly, Amazon's localization in China has done a bad job and has not catered to the Chinese market to adjust. The goods still have a strong "foreign flavor".

Third, Amazon's products have basically no price advantages. This is a clear stream in the Chinese e -commerce market in the price, but consumers are basically not buying this stream.

All this has caused Amazon's e -commerce platform to be unable to highlight the siege in China. It has been hovering on the second -tier e -commerce platform, which is completely out of touch with the identity of its global e -commerce giants.

And this also brings huge problems for the development of Amazon Cloud Technology in China. You know, most of the services of Amazon Cloud Technology in foreign countries are related to their own business. Therefore, there is less Chinese e -commerce business blessing, and Amazon's cloud services in China can not be held. In the end, the Amazon cloud service could rise because Amazon's AWS cloud service at that time could help companies integrate Amazon's functions to their own corporate websites.

But Amazon Cloud Technology does not have this condition and foundation in China. The comprehensive retreat of Amazon e -commerce has led to Amazon's cloud services that can only be scattered to find other corporate services, instead of creating a cloud ecosystem based on the Amazon e -commerce platform.

Amazon did not seem to feel anxious because of this state, continued to fight steadily, and continued their steady strategy. But it is obvious that such a strategy is likely to be out of time.

First of all, the fierce competition in the mainland market does not allow Amazon to continue the Buddhism like this. If you cannot establish strong user stickiness, let cloud services really take root in the Chinese market. Then Amazon Cloud Technology is likely to gradually withdraw from the Chinese market like its e -commerce business.

Secondly, the international advantages of Amazon Cloud Technology are constantly being eaten. Google and Microsoft continued to work on cloud technology. Amazon's technical advantages are gradually disappearing, and now it seems that only the price advantage and word of mouth are left.

The establishment of the price advantage is that the current Amazon Cloud Technology's products still maintain a very good cost performance. If the quality of the product declines, the price advantage will not be established.

In this way, once an emergency occurs, the reputation of Amazon Cloud Technology has dropped sharply, and its price advantage will no longer exist. Amazon will go through a very difficult moment.

However, what is afraid of coming.

The situation of cloud services is constantly, and the service provider is difficult to protect

In August 2022, Amazon Cloud Services failed, and a large number of server downside. This has caused a large number of APPs in the United States, and many companies have suffered heavy losses.

But this is not the first time Amazon Cloud Technology has occurred. Last year Amazon had two serious large -scale failures. This year is the recurrence of old diseases.

The reliability of Amazon cloud services is questioned. Once Amazon's cloud services are no longer reliable, many of its business logic will not be established.

Amazon Cloud Service proposed a centralized data protection service Amazon Backup in 2019. This concentrated data protection service is based on Amazon's stable server and network.

If this network is down several times a year, the loss of customers may be difficult to recover. And Amazon's cloud service is not completely cheap.

There are many users of Amazon Cloud services. Amazon's cloud services often have some content that can be called overlord clauses, making users suffer.

In addition to service issues, Amazon Cloud has a big problem in regional operators in China. Amazon Cloud Technology's regional operator in China is the new network of GEM listed companies. And this company is hard to say.

It can be seen from the price -earnings ratio of a reasonable level of valuation. In 2021, Halo New Network can be described as a low -valued little white horse. The net profit of more than 800 million per year is not matched with its valuation of less than 20 billion.

However, after 2021, Halo New.com has continued to decline, and compared to 2020, the performance was basically in place compared to 2020. By 2022, the performance of Halo New Network began to decline significantly, from 13%of the first quarterly reported decline to a decline of 25%.

In contrast, the stock price of the Halo New Network is not only the stock price. Nowadays, the Halo New Network has fallen from a high point of 30 yuan to near 9 yuan. A large number of investors were stuck. The price -earnings ratio of the Halo New Network is also becoming high, and it is no longer an underestimation. Nowadays, the stock price of Halo New.com is shocking at a low level, and there is no sign of offense.

Nowadays, the performance of the Halo New Network will inevitably affect the development trend in the next few years. Amazon's choice of Halo New Network as a partner is precisely the leading position of its domestic IDC industry. However, if the performance of the aura new network continues to fall, its leading position is obviously unsuitable. At that time, Amazon may change partners.

However, whether the various explicit costs and hidden costs facing partners are affordable by Amazon Cloud Technology, they need to make a question mark.

Amazon Cloud Technology is currently facing its core value, and its competitors at home and abroad continue to work hard. The position of its industry boss is at stake, and the senior management does not seem to make any changes in strategic changes. The current Amazon Cloud Technology is a crisis.

Conclusion

Amazon is undoubtedly one of the greatest Internet companies in the 21st century, but at present, it is also very prominent to rely on the cloud services provided by Amazon Cloud Technology. The technical moat is not deep enough, and the price advantage is gradually being eaten. It is an indisputable fact.

At the same time, the symptoms of Amazon's dissatisfaction in China's soil and water are still continuing in the field of cloud services. Amazon did not give too many cloud services suitable for China, but turned to the business of doing sea companies.

Amazon has deep technical reserves and talent advantages, and should not only be reduced to a cloud service provider that only focuses on the service of going out to the sea. As for how the future development direction of Amazon Cloud Technology will change, let us wait and see.

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