Although, we should expect that some companies in the future will adopt a similar strategy to Matson’s all-in move to AWS, we should not perceive it as a signal that the floodgates of colocation data centers opened.
The reasons that only a percentage of companies will be able to adopt a similar strategy are:
- An all-in move to a cloud vendor is not a suitable strategy for every company’s architecture and even for those that is, it requires a long and challenging preparation.
- Going all-in with one cloud provider creates a SPOF that makes most companies leery for both rational and psychological reasons.
- Security is a primary concern of any company considering the decision to move all its data and applications (even the most sensitive) to the cloud.
- Although freeing up cash is tempting, an all-in move strategy to a cloud vendor is not necessarily a long-term savings formula and encompasses the risk of rising costs.
For all the above reasons, AWS and similar cloud vendors create health competition and even business opportunities but not a severe threat to ultra-secured, high availability, inter-connected colocation data centers.