This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Google Clouds Amazon's Advantage

Stocks in this article: AMZN GOOG RAX

NEW YORK ( TheStreet) -- Amazon (AMZN) may be feeling a bit more defensive of its cloud business now that Google (GOOG) has released its Google Compute Engine to the masses.

The key areas where Google can attack Amazon are performance consistency, boot times and its pricing model. Amazon should be able to fight back on all these fronts because the company has a huge lead - by years - over Google on services breadth and eco-systems, but that doesn't translate into complacency when it comes to protecting its flagship EC2 service.

"Regardless of what else AWS Amazon Web Services brings to the table, they have to have a robust compute offering," said James Staten, principal analyst at Forrester. "This is what Google is questioning and so it will cause some doubling down by AWS on this service."

Google is clearly garnering a lot of attention from cloud developers and cloud native companies, given the company's size and strong credibility around its cloud services. However, it remains unclear whether Google views Google Compute Engine as anywhere near as critical to Google's success as Amazon views EC2. "They are a search and advertising company first and foremost," Staten said. "Most of this will be kicking the tires to determine if there are clear advantages to GCE. So it's a bit of wait and see at this point."

Rackspace Hosting (RAX) will also be watching this rivalry closely given that the company's revenues have been trailing forecasts partly driven by Amazon's aggressive price-cutting. Google's cloud endeavors present a greater threat towards Amazon, which is also a pure play, rather than Rackspace, which offers a mix of managed services, traditional hosting and colocation.

"Rackspace is a managed services company first and foremost," said Staten. "For Rackspace, they're best off not acknowledging Google at this point and instead continuing to talk hybrid cloud and openness."

Written by Andrea Tse in New York

>To contact the writer of this article, click here: Andrea Tse.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs