Part 1 (of 2) looking at a recent example of how The Innovator’s Dilemma is playing out between the biggest clouds and the challenging upstarts.  

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SHOW NOTES:

• The Innovator’s Dilemma (Clayton Christensen)
• AWS’s Egregious Egress (Cloudflare)
• Announcing Cloudflare R2 Object Storage (without Egress fees)
• Cloudflare’s Disruption (Stratechery)
• Bandwidth Alliance
• Cloudflare is eating the Cloud from outside in (swyx @ dev.to)
• Overview of AWS Infinidash (Did The Cloudcast predict R2?)
• Understanding Data Transfer in AWS (Last Week in AWS)

ONE COMPANY’S PROFIT IS ANOTHER COMPANY’S OPPORTUNITY

As AWS transitions from long-time leaders to a new leadership team, many industry upstarts are looking for ways to pick away at their most profitable (and customer-problematic) services, with new capabilities that may unlock completely new business models for companies.

CHEAPER NETWORKING, AGILE COMPUTING, and NEW COMPANY MODELS

1. Disruption rarely happens because of better technology, but more often because of changing economics. (Gracely’s Theorem) 
2. AWS has long had very expensive networking costs, but it’s an area that really hasn’t faced competition. 
3. AWS offered enough services that their customers made the choice to deal with the network costs vs. having to build things themselves.
4. Being the “everything” thing in computing always has its pros and cons. Computing has historically (last 40yrs) been moving to more distributed, modular architectures.
5. We’ve seen a number of companies begin to offer edge or serverless types of offerings (GitHub, Netlify, Google Run, various CDN offerings, 
6. New ideas always emerge from difficult times (e.g. COVID pandemic) that we didn’t expect.
7. Will this create a new round of acquisitions? Will it trigger price wars? 

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