A funny expression inside Amazon shows why it's beating Google and Microsoft in the cloud

Andy Jassy, AmazonAmazonAWS CEO Andy Jassy

Amazon has a huge lead against its competitors in the cloud market, with its Amazon Web Services on track to hit over $10 billion in revenue this year.

AWS CEO Andy Jassy doesn’t see that lead shrinking anytime soon because of one simple reason: experience.

Amazon started offering public cloud-computing services nearly 10 years ago, way before any of its competitors did. That’s given it a huge head start over its rivals, as AWS’s revenue is estimated to be as much as over four times bigger than Microsoft Azure’s, the second-largest provider.

To remind his team of this, Jassy says they even have an internal slogan about it: “There’s no compression algorithm for experience.” In other words, there’s no shortcut to gaining experience. And the lessons you learn through those experiences aren’t something you can simply buy off the shelf.

“You just can’t learn some of the lessons that we’ve learned until you get to those different elbows of the curve of the scale,” Jassy told Business Insider.

Jassy also listed AWS’s broad functionality and fast pace of innovation, as well as its vast partnership ecosystem as reasons for blowing away its competition. But he still shakes his head at the fact that it took so long for its rivals to realise the cloud market’s massive potential.

“One of the biggest surprises for me and for the team was just how long it took for other providers to build an offering. I don’t think any of us in our wildest dreams thought we’d have a 6-year head start,” Jassy added. “There’s a substantial difference.”

Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.

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