The move underscores Amazon’s continuing expansion as a powerhouse in cloud hosting and related services, providing a one-stop shop for customers who come for one product and stay for everything else (not unlike its retail strategy in that regard). Also, it is a reminder of how the economies of scale in the cloud business make it financially challenging to compete if you are not already one of the big players, or lack deep pockets to sustain your business as you look to grow. GoDaddy has been a direct victim of those economics: just last summer, GoDaddy killed off Cloud Servers, its AWS-style business for building, testing and scaling cloud services on GoDaddy infrastructure. It also already was hosting some services on AWS prior to this: its enterprise-grade Managed WordPress service was already being hosted there, for example.
Huh. Hopefully we’ll have more than just Amazon AWS, Google GCE, Microsoft Azure, and a handful of other big players in the future. Right now, we’re tending towards a few behemoths.