“We have more demand than we could fulfill if we had even more capacity today,” Amazon CEO Andy Jassy said Thursday. “Everyone today has less ca

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2024-11-16 20:00:07

“We have more demand than we could fulfill if we had even more capacity today,” Amazon CEO Andy Jassy said Thursday. “Everyone today has less capacity than they have demand.”

As demand soars, Microsoft is grappling with capacity issues, too. The second largest cloud provider nearly doubled infrastructure capital investments since last year to absorb anticipated demand, the company reported last week.

The surge is tied to AI workloads, which have joined enterprise modernization initiatives as a prime driver in cloud. AWS, Microsoft and Google Cloud have all grown their cloud business over the last year and invested heavily in capacity buildouts.

“One of the least understood parts about AWS, over time, is that it is a massive logistics challenge,” Jassy said Thursday, pointing to 35 cloud regions, 130 availability zones and thousands of offerings dependent on data center facilities.

Getting the balance just right is the challenge. “If you land too little of them, you end up with shortages, which end up in outages for customers,” Jassy said. “If you end up with too much, the economics are woefully inefficient.”

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