The article “Amazon Web Services ramping up government focus” by Marjorie Censer deals with the new cloud (Web-based) computing service, GovCloud, which is offered by Amazon Web Services. Teresa Carlson, the new Vice President of the Global Public Sector at Amazon puts a lot of effort in promoting Amazon products among governmental agencies. The company currently sells both directly to the government and through system integrators, who help the company to achieve the necessary scale. Carlson is positive about the future of the project and she believes that the current budget cuts help Amazon to promote their product, as cloud computing facilitates IT expenditures reduction for their clients.
The story of Amazon’s expansion into the government-focused business can be related to the class Managing In A Global Economy in two ways. Firstly, it shows the successful strategy of Amazon Web Services, which diversified their product portfolio by adding cloud-related services. Secondly, it demonstrates the current trend of IT innovation and cost reduction even in governmental sector, which is often considered very conservative. This fact shows managers the rising trend in business development and opens great opportunities for new product and strategic ideas. Moreover, it highlights the fact that governmental agencies may become a strong customer base for a company, therefore managers should give more consideration to them, when defining target audience for their products. Managing a business in the global economy requires profound understanding of current situation in the market and the emerging tendencies in business, therefore the case of Amazon Web services can become a valuable lesson for the future global managers.
Censer, Marjorie. “Amazon Web Services ramping up government focus.” Washington Post
28 Aug. 2011: n. pag. Web. 29 Aug 2011.