Amazon Cloud Crash Worries Other Cloud Companies

Amazon.com Inc.’s (NASDAQ:AMZN) recent outage of its cloud services has become a cause for concern for other companies which have invested heavily into cloud computing services.
SAP AG (NYSE:SAP), has expressed its concern about the recent outage for Amazon.com Inc.’s servers causing a global reduction and leading to the reduced overall growth of cloud computing businesses. SAP AG recently introduced its web based cloud computing software after delays of more than two years and is looking at a decrease in overall demand.
The crash of Amazon.com’s cloud services occurred last month and it put all websites across the United States which was hosted on its servers, offline. The cloud business industry is a $68 billion baby that has a long way to go before it can become mature enough to give companies investing in it significant profit.
Sanjay Poonen, the Executive Vice President of SAP AG told reporters in a telephone interview that the week succeeding to the crash of Amazon’s servers was the toughest week for the cloud service business. He said that the cloud services business will have to work much harder to get the same trust that people had developed in cloud services before the crash of Amazon’s services.
Even when there was no connection between SAP AG and the crash of servers belonging to Amazon, the security concerns arising from this crash will lead to the hampering of the efforts of SAP and other companies who are investing in Cloud computing. SAP offers a cloud service called as on-demand software and software sold as service, which is also known as SaaS. SAP is currently focusing its business towards the cloud service business to reach the $30 billion target market by the middle of the current decade.
Poonen said at the interview that SAP has had tough time in convincing its customers to believe that it is much more than an old software company.  He also said that his appointment to the President Barack Obama’s commission to develop industry standards for the fast expanding cloud software will help SAP get rid of its old image as a software provider. Google’s (NASDAQ:GOOG) cloud services is also under the scrutiny of the city’s controller who are currently looking into its inability to provide e-mail services for city employees.
The crash of Amazon.com’s cloud services came at an unfortunate time for the Cloud2 commission that was establish a day prior to this crash. This commission was established to make recommendations for the deployment of cloud based internet services.