• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Exclusive

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

TechPointCloud

Amazon Cloud Partners Face Tricky Proposition

Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
April 15, 2016, 3:33 PM ET
DLD14 conference Munich - "Content And Context"  - January 19-21, 2014
MUNICH/GERMANY - JANUARY 21: Werner Vogels (Amazon) speaks on a panel discussion/on the podium during the Digital Life Design (DLD) Conference at the HVB Forum on January 21, 2014 in Munich, Germany. DLD is a global network on innovation, digitization, science and culture which connects business, creative and social leaders, opinion-formers and influencers for crossover conversation and inspiration. (Photo: picture alliance / Jan Haas) Photo by: Jan Haas/picture-alliance/dpa/AP ImagesPhotograph by Jan Haas — picture-alliance/dpa/AP Images

News that Amazon plans a service that would let big customers more easily manage IT services running offsite in Amazon’s cloud caused a furor in some quarters this week. It probably shouldn’t have, but more on that later.

On Tuesday, trade publication CRN reported that Amazon (AMZN) is working on a tool that would let its large cloud customers more easily manage their often confusing Amazon resources. The problem is that Amazon Web Services, Amazon’s cloud business, already has partners called managed service providers (MSPs) whose job it is to—stop me if you’ve heard this before—manage their customers’ often confusing Amazon resources.

By resources, I mean things like databases, data warehouses, workflow, even email and virtual desktops. Since it debuted its basic Simple Storage Service (S3) 10 years ago and then added basic computing power, AWS has added a flurry of new software that rivals products from Oracle (ORCL), Microsoft (MSFT), and SAP (SAP), even though those competing products also run on Amazon’s basic infrastructure.

But getting back to the MSPs: If you are one of those partners, you may indeed worry about Amazon’s plans. Not long ago, AWS recruited and certified a flock of these MSPs as a way to help big customers, who are used to corporate-style hand-holding and support, get more comfortable using AWS. Some of these companies are familiar names like Accenture (ACN), Rackspace (RAX), InfoSys, and Wipro. And now Amazon apparently will offer a service that will at least partly compete with what those carefully cultivated partners do.

Amazon declined to comment for this story, but told CRN it always builds products with its partners in mind.

Get Data Sheet, Fortune’s daily newsletter on the business of technology.

Jeff Aden is cofounder and executive vice president for 2nd Watch, an Amazon MSP. While he had no comment about Amazon’s reported plans, he said managed services will remain crucial for big AWS customers in the future because fundamentally, AWS products still target programmers and developers, not corporate managers.

“Most Amazon products and services are for highly technical do-it-yourselfers. MSP partners are required to customize applications, to handle procurement processes—all those things that companies need but are not programmable.”

AWS Customers Fear Cloud Lock-in

That may be true, for now. But AWS is nothing if not nimble and opportunistic, and AWS partners of all kinds should already know this. If AWS sees a way to sell more stuff, it will move into new areas fast, always citing customer demand.

That’s led to some dark humor at the company’s big AWS Reinvent customer conference. Every year, third-party partners in the audience wait with bated breath to hear what new Amazon products are coming. Many find out during the keynotes whether they’ve suddenly become dead men walking because AWS just announced a direct competitor.

Rachel Chalmers, principal at venture capital firm Ignition Partners, described it this way at the Structure conference last year:

“VCs now have a melancholy ritual every year at Re:invent after Jeff Barr’s or Werner’s keynotes: We walk the floor to see which startups are crying.”

Werner Vogels is Amazon’s chief technology officer, Jeff Barr is a well-known AWS evangelist, but Chalmers probably meant to refer to Amazon’s Andy Jassy, former senior vice president and now co-chief executive officer. Jassy and Werner give the keynote speeches, not Barr.

To be fair, AWS did not invent this practice of eating its own ecosystem. IBM (IBM), Oracle (ORCL), and Microsoft have all done very much the same thing. Microsoft (MSFT) of 20 years ago, in particular, raised this to an art-form because it was so partner focused. It would recruit and coddle third-party software vendors and other partners to build applications for Windows and higher-level functions for Office and, within a year or two, add competitive functions on its own.

Watch: How Amazon Took Over Cloud

And, Microsoft, like Amazon, when asked about this, always told reporters that it kept partners informed of its plans so they could move to higher ground.

Same deal here. What’s old is new again.

 

This story was updated at 4:21 p.m. to reflect that Andy Jassy, not Jeff Barr, keynote at AWS Re:invent.

About the Author
Barb Darrow
By Barb Darrow
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

altman
CommentarySam Altman
Musk vs. Altman: AI safety cannot be one man’s job
By Stavros GadinisMay 18, 2026
5 hours ago
Pope Leo launches an AI commission days before he releases a papal letter alongside Anthropic cofounder Christopher Olah
AIPope
Pope Leo launches an AI commission days before he releases a papal letter alongside Anthropic cofounder Christopher Olah
By Catherina GioinoMay 18, 2026
5 hours ago
John Ketchum, CEO of NextEra Energy, speaks during BlackRock's 2026 Infrastructure Summit in Washington, DC, on March 11, 2026. Photographer: Daniel Heuer/Bloomberg via Getty Images
EnergyNextEra Energy
NextEra’s $67 billion Dominion takeover creates the world’s largest utility—just in time to win the AI data-center power surge
By Jordan BlumMay 18, 2026
6 hours ago
Harvard University banners hang in front of a building
CryptoCryptocurrency
Harvard sold off its entire $87 million Ethereum stake just one quarter after buying it
By Jack KubinecMay 18, 2026
6 hours ago
Not the Allbirds effect: Japan’s top bidet maker Toto has been quietly making chip supplies for decades, and the stock market finally noticed
AIChips
Not the Allbirds effect: Japan’s top bidet maker Toto has been quietly making chip supplies for decades, and the stock market finally noticed
By Catherina GioinoMay 18, 2026
7 hours ago
monet
CybersecuritySocial Media
6.7 million people thought they were ripping apart an AI-generated Monet painting. But it was real
By Nick LichtenbergMay 18, 2026
7 hours ago

Most Popular

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
6 days ago
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
3 days ago
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
Economy
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
By Jason MaMay 17, 2026
1 day ago
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
Innovation
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
By Jason MaMay 16, 2026
2 days ago
While Trump insisted the Iran war would end ‘soon,’ an account in his name was buying millions in oil, defense and gold
Economy
While Trump insisted the Iran war would end ‘soon,’ an account in his name was buying millions in oil, defense and gold
By Eva RoytburgMay 18, 2026
8 hours ago
Mamdani's New York is coming to tax your private jet. Here's how to prepare
Personal Finance
Mamdani's New York is coming to tax your private jet. Here's how to prepare
By Greg RaiffMay 16, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.