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There is no meaningful way for an independent vendor to compete with a Cloud Provider offering the same service. It gets bundled in the initial sales pitch, pro
by jeswin 6y ago
There is no meaningful way for an independent vendor to compete with a Cloud Provider offering the same service. It gets bundled in the initial sales pitch, promoted in their documentation and at events, and gets heavily discounted.
It simply becomes the default - and (if on AWS) nobody will even think of Elastic after a couple of years.
- Spivak 6y agoYou compete by not competing. Make your software proprietary and sell it to the cloud provider for hefty license fees.
- manigandham 6y agoAnd yet many companies are competing just fine. Elastic's biggest growth comes from cloud services, which matches every other database vendor from MongoDB to Redis. [1]. AWS just proved that the market wants to buy solutions, not software. There are tons of customers and environments where a dedicated vendor can offer something far better than the lowest-common-denominator that AWS provides. If you want another success story, just look at how Snowflake built a better Redshift on AWS (quite literally). 1. Start at page 23 of their earnings report: https://s2.q4cdn.com/265747582/files/doc_financials/2021/q2/ESTC-Q2-FY21-Earnings-Deck-(POST).pdf https://s2.q4cdn.com/265747582/files/doc_financials/2021/q2/...
- mr_toad 6y agoThe big three may have some advantages, but there are numerous smaller competitors. The biggest advantage the big three have is that some people don’t even bother looking for alternatives.