Flux Dominates Web3 and Here Is Why They will Challenge Amazon’s AWS.
Since launching its web services 20 years ago, Amazon has steadily claimed most of the cloud-based industry with around 33% of the market share. Flux is about to change that.
The American giant, best known for its well-oiled e-commerce machine, has dominated the online industry since the dawn of the world wide web. Their relentless pursuit of efficiency and unequivocal customer service standards has made Amazon a household name in the retail sector.
However, like all good multinational corporations, they haven’t held back in their attempts to reach pure diversification; one particular venture has been a masterstroke from Bezos and co.
Now, we wish this could be about their journey into TV and Film, as Amazon spends billions buying historical film studios and Intellectual Property. Mr. Bezos is now sitting on the rights to Bond and Lord of the Rings; he just needs Harry Potter to complete the holy trinity of British fictional royalty.
However, another venture that Amazon went on twenty years ago is now a significant player in their annual revenue streams. Amazon Web Services (AWS).
What are Amazon Web Services (AWS)?
Amazon Web Services is a subsidiary of Amazon Inc. that provides cloud computing services and API’s to individuals, companies, and governments. Amazon has built state-of-the-art data centers worldwide which provide access to servers that you can use for storage, data management, security, and more.
At the beginning of the millennium, Amazon was struggling to scale its engineering operations and was getting increasingly frustrated with how to keep its computational ability in line with its online growth.
In pursuit of solving their own internal struggles, they realized that if they were struggling with these types of problems, then it wasn’t far-fetched to believe there may be many others with similar issues. This led the Amazon executive team to launch the AWS to outside developers in late 2002, and by 2004 hundreds of applications were being built on top of their storage services.
By 2006, AWS released its cloud services to the public, with Microsoft — a future competitor, as one of their earliest customers.
AWS becomes a giant
Until 2012, AWS has just considered an excellent little side project for Amazon to have in their spare time. However, as the 2010s progressed, it became abundantly clear that Amazon had struck gold and its web services were to become a massive part of the company.
As of 2022, Amazon Web Services now accounts for roughly 33% of the world’s cloud storage, has annual revenues of $17.8 billion, and provides services to some of the world's largest companies and government entities.
AWS can boast Netflix, Epic Games, Disney, and Airbnb as customers, not to mention Amazon recently became the chosen provider for the American and British government’s top secret storage providers. MI6 and the CIA are just a couple of the governmental organizations that are now using AWS.
Does this make Jeff Bezos a spy?
Why is AWS the largest cloud provider?
An entire essay could compare all cloud providers, trying to figure out why AWS remains the largest. However, perhaps the most simple reason is that they were first to market. None of the other technological giants had entered the cloud service space before Amazon, so Amazon had a first mover advantage.
Who are AWS competitors?
They may have been slow to set off, but other companies have now started to close the gap to Amazon in recent years.
Microsoft Azure — Once a customer of AWS, the software giants launched their cloud services in 2008 and are now accountable for around 20% of the market share.
Google Cloud — Similarly launched in 2008, the Silicon Valley company has carved out just under 10% of the global market share.
IBM and Alibaba — These two technological giants roughly share around 5% of the market.
Others — The remaining 30% of the market is controlled by various smaller companies.
The limitations of the current cloud service model
As cloud internet providers fight for their market share with increased technological performances, competitive prices, and perhaps just a good old-fashioned marketing campaign, is there a limitation to what they can provide customers?
Centralization v Decentralization Technology
Even though cloud services allow you to store your information and data across multiple servers, nearly all cloud services are centralized under one entity. This means that all your data and the applications running on the servers are controlled by one company; in many cases, Amazon, if you’re using AWS.
However, a genuinely decentralized cloud service provider like Flux nodes allows you to store your information across a truly decentralized platform. This means that there isn’t one entity in complete control of your data or information; instead, the entire system is spread across thousands of shareholders. These are referred to as node holders.
What are Flux Nodes?
Flux nodes is a decentralized cloud infrastructure platform built entirely on the blockchain. Its mission is to build the next iteration of the internet with one of the largest decentralized computational networks in the world. At the time of writing, Flux has around 12300 nodes, offering its users 244TB of Ram and 5.4 PB of storage.
Flux serves as the primary infrastructure platform for various leading blockchain applications and developers looking to help build the next major project in web3.0. As a critical component of web3.0, decentralization refers to the ability to avoid or remove the opportunity for one person/entity to have complete control of a system.
Flux nodes is an entirely decentralized platform where each computer in the network plays a critical role in storing the data.
Will Amazon remain on top?
With the emergence of web3.0 and the new decentralization movement, it is becoming increasingly likely that more open cloud infrastructure will become more attractive to developers and customers.
Many people are starting to feel weary about these giant corporations having access to the world’s information, and so being able to store data in a more open system will only become more popular.