Amazon is considering furthering its dominance of the cloud computing business, and large networking companies’ shareholders are already running for the exits.
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According to The Information, Amazon is considering selling its own network switches with built-in connections to its Amazon Web Services cloud-computing offerings, in hopes of reaching into the $14 billion global market for data center switches. Apparently, Amazon will work to do this cheaper than potential rivals including Cisco Systems, Arista Networks and Juniper Networks – sending their shares lower on Friday.
Amazon would create generic networking equipment based on open-source software and sourced from "white box" manufacturers, and the white box switches would be 70% to 80% cheaper than comparable switches from Cisco, The Information reported. Facebook has already put out its own networking designs with white-box switches.
Amazon's e-commerce dominance upended the retail sector, while the company has pursued growth by moving into new lines of business, spreading panic to its new competitors. Amazon did this when it entered the retail grocery business through its purchase of Whole Foods Market. Recently, Amazon purchased online pharmacy PillPack
Amazon is a disrupter. Its ecommerce dominance has upended the retail sector, while the company has been pursuing growth by moving into new lines of business. One of the major examples is the company’s purchase of grocer Whole Foods Markets while the company recently purchased online pharmacy PillPack.
Amazon’s share set a record high on Friday.