'Paranoia' about Amazon could help Microsoft catch up, analyst says - Business Insider

This story requires our BI Prime membership. To read the full article,Companies like Walmart have a certain "paranoia" of working with Amazon Web Services — a paranoia that they don't have when it comes to Microsoft, says RBC Capital Markets Managing Director Alex Zukin.

Chief among Amazon's cloud Achilles' heels: A certain amount of "paranoia" that customers have about working with Amazon, and a perception that Amazon trails behind Microsoft when it comes to customer service, Zukin says. RBS does business with both Amazon and Microsoft. On the other hand, Microsoft has a reputation for mostly sticking to software — it'll almost certainly never get into the grocery business, for example.A 'white glove service'

"The issue is they don't have as developed of enterprise-grade services that can come guide you as a company on how you should architect and how you should plan and manage in order to scale," Zukin said. "They have a strong catalog of services but not every company is ready to adopt the breadth of the services and depth of the services right away."

Zukin also says that AWS is facing a drag on its reputation thanks to a massive security breach at Capital One, one of its flagship customers. While all indications show that the incident wasand not any flaw in Amazon's cloud itself, it still caused customers to feel that Amazon was playing the "blame game" instead of doing more to help prevent such a breach from happening again, Zukin said.

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