Microsoft vs. Amazon: How can AWS beat Microsoft 365?

Not long ago, information technology was reported that Amazon may be building a "rebel alliance" to combat Microsoft's stranglehold on the productivity app space. In this hypothetical alliance, Amazon would unite entities such every bit Slack, Dropbox, and Salesforce to combat Microsoft's bundled offerings. But given the latter'southward Part, Teams, and associated productivity apps, many analysts and experts wager that no possible rival bundle from Amazon could stand a real chance at stealing Microsoft's crown.

That's why we hither at Windows Cardinal want to frame the challenge differently. Instead of asking whether Amazon has a take a chance, allow'south presume they do have 1 and enquire the question, "How could Amazon employ that take a chance and legitimately threaten Microsoft?"

Microsoft vs. Amazon: An uphill battle

Fifty-fifty when approached from the angle of "how can Amazon practise it," rather than "can Amazon practice information technology," experts still reiterated that the task at hand was immense and potentially unfeasible.

"Equally we've seen with Google and, to a bottom extent Apple tree, taking on the Microsoft Office (and 365) behemoth is no easy task," Forrester Vice President and Principal Annotator J.P. Gownder said. "Microsoft has divers the metaphors of how productivity happens, building upon the IP of others simply systematizing their operations, integrating them across different scenarios, and training a generation of workers in their usage. Microsoft has vast stores of user data and It data on usage. And the ability of incumbency is important here, every bit so many documents in the globe take been built to Microsoft standards."

Gownder expanded on Amazon'due south struggle by pointing out its rail record with regard to inbound new markets. Given how it failed with the Fire phone, success isn't guaranteed. Amazon attempting an even greater challenge than that in the form of i-on-one-ing Microsoft in the productivity app infinite would require incredible amounts of resources and nevertheless be far from a condom bet.

Though rivals to Microsoft 365 take been rumored, a real competitor has notwithstanding to emerge.

Nicholas McQuire, the chief of enterprise research at CCS Insight, also said that Amazon would confront a "huge struggle" in its attempt to combat Microsoft 365. "AWS has always had a glaring omission in its corporate strategy in lacking a large-scale, college-margin, software-equally-a-service business," he said. "And information technology must have been looking enviously at its competitors during the pandemic where this gap was heavily exposed."

Tough as it will be for Amazon to make a dent, it's certainly possible. Both analysts had thoughts on what advantages the company had that could help with taking on Microsoft.

"Amazon probably believes that AWS gives them a leg up on Google or Apple tree," Gownder stated. "Google is deject-centered simply not nearly so successful equally AWS. Google's applications have largely been targeted at consumers and students; they only match probably 70% of the productivity features of Microsoft Office and lack the deep enterprise toolset. Amazon, by contrast, has widespread enterprise relationships via the AWS cloud, upon which and then many enterprise-axial applications run. And since the future of productivity lies at least in office on AI, Amazon's toolset of AWS-friendly AI components could be a resource."

And then, at the very least, there is 1 prebaked tool in Amazon's camp that it could use to further its agenda, should information technology choose to go head-to-head with the pack leader.

"The challenge will be how tin can AWS create an alliance of best of brood partners that collectively provide a cheaper, improve integrated, simplified and more secure option for businesses than Microsoft?" McQuire said. "The 'best of breed' versus Microsoft argue has been going on for several years now and in reality, a consortium hasn't emerged to really threaten Redmond's position."

With that being said, McQuire did notation the benefits of Amazon attempting the feat. "Much of AWS' strategy focuses on developers and IT operations, and then more business concern applications will open up a line of appointment with business organisation determination-maker community and in particular the C-Suite — audiences that AWS hasn't had much recognition with in the past."

Microsoft vs. Amazon: The everything store's secret sauce

It's not like Amazon doesn't have tools that can exist used to give itself an edge. Gownder's mention of the company'due south AI components is ane surface area of potential interest. McQuire saw openings equally well, bringing upwardly the aforementioned AI services also while also seeing other room for gains across Amazon's portfolio.

"An area where AWS and partners could proceeds a foothold is in the converging areas of customer-facing and employee-facing applied science," McQuire said, posing the question of how AWS could fuse its Connect Contact middle platform with partner solutions such as Salesforce and Slack to best aid said convergence goals.

McQuire then illustrated how Amazon could thread the needle and connect all its individual avails into a patchwork quilt capable of existence bundled as something competitive with Microsoft 365 and the productivity juggernaut that is Microsoft itself.

Amazon has the ways to compete exterior the shadow of Microsoft'southward ecosystem.

"Teams has largely been an employee-facing solution merely with Connect and Chime tied into Salesforce and Slack, suddenly yous can solve for both internal and external collaboration scenarios tying together experiences across sales, service, and contact eye functions which have all shifted to remote and now hybrid operations during the pandemic," McQuire stated. "You lot also have a huge developer surroundings in knitting these solutions together to create custom workflows, a vital area that Teams is but just at present trying to build out with developers."

He pointed out that Slack's third-party integrations are another standout element and differentiator that could assist with rounding up ISVs, be they Atlassian, Workday, Zendesk, or other similar vendors.

Combining all those elements with Amazon'southward AI services illustrates how Amazon could stand a hazard in presenting a uniquely angled package competitive with Microsoft's offerings. Still, McQuire reiterated that the fight would still eddy downwardly to how secure, simplified, and cost-effective Amazon'southward overall proposal is compared to its main competitor'due south.

Microsoft vs. Amazon: Possibly tomorrow, maybe never

There'south no telling what volition happen with Amazon'due south rumored league of extraordinary productivity apps. Mayhap it will appear and rise to the challenge of spooking Microsoft, or maybe it'll never see the low-cal of twenty-four hours. Only what'south important hither is to remember that we shouldn't count Amazon out. With the amount of money and resources available to the company, as well equally its history of competition with Microsoft, never say never when it comes to the Prime Day emporium's willingness to brand a bold move.

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