Nine months ago, Amazon launched their new dynamic content delivery service in beta and two weeks ago, I posted details on how their product is coming along and outlined new features they have added since launch. Every since Amazon announced their new service, people keep asking me if Amazon will disrupt Akamai’s DSA business and drive pricing down in the market as a whole. While Amazon still has a long way to go before that has the possibility of happening, make no mistake, they are gunning for Akamai, even though they won’t call out Akamai by name.
From purely a features standpoint, Akamai’s dynamic content delivery service still trumps Amazon’s, by a wide margin. But that’s not going to last for too long and little by little, Amazon is already starting to close the gap. Amazon’s working on rolling out a lot more functionality and while they will never be able to compete for 100% of Akamai’s DSA business, they will continue to get stronger and go after more of the business that doesn’t require a ton of professional services. Amazon will never compete for 100% of the market, but they don’t need to. All they have to do is continue to roll out features, add an SLA, lower pricing and prove their dynamic content acceleration services performs well and can scale, with reliability. Of course building all of that out to scale doesn’t happen overnight, but it’s not as hard as some vendors make it out to be and Amazon has the resources to make it happen and more importantly, has multiple lines of businesses to generate revenue from. Amazon can be patient and grow the business over time.