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MBA 515 MBA515 MBA/515 Milestone 3 PEST Analysis.docx – Cloud Based Computing

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MBA 515 MBA515 MBA/515 Milestone 3 PEST Analysis.docx – Cloud Based Computing

Cloud Based Computing Milestone Three: PEST Analysis Paul Jacob MBA-5151/2019

Introduction
In 2006, Amazon launched Amazon Web Services (AWS). AWS is a cloud service platform marketed towards business users as an alternative to traditional software and hardware infrastructure. Before AWS entered the market, business would house all of their infrastructure on-site.

Description

MBA 515 MBA515 MBA/515 Milestone 3 PEST Analysis.docx – Cloud Based Computing

Cloud Based Computing Milestone Three: PEST Analysis Paul Jacob MBA-5151/2019

Introduction
In 2006, Amazon launched Amazon Web Services (AWS). AWS is a cloud service platform marketed towards business users as an alternative to traditional software and hardware infrastructure. Before AWS entered the market, business would house all of their infrastructure on-site.
They would purchase hardware and software from other companies and they were responsible for maintaining and troubleshooting their own databases. AWS’s goal was to replacethis outdated model with something that would be more efficient for companies.
Businesses could host their infrastructure on AWS’s cloud network and outsource the upkeep and troubleshooting to AWS. This service model is called Infrastructure as a Service, or IaaS. IaaS allows clients to free up time and resources to be used elsewhere within the company.
It also allows them to deploy solutions much faster and less expensive compared to on-site options. These advantages, as well as being the first supplier of IaaS, allowed AWS to grow quickly. They are now valued at over $18 billion (Miller, 2016).
AWS currently has over 1 million users actively using the platform (Pettey & Goasduff, 2017). At least 10 percent of their user-base is enterprise scale, and includes clients such as Netflix, Kellogg, and AirBnB (Wootton, 2017) At 35 percent market share, they control a majority of the IaaS industry (Dinsdale, 2017).
Even though they have a large market presence, AWS needs to continue to look at their ability to expand and focus on future successes. One of the best tools to determine their readiness is a PEST analysis. A PEST analysis looks at how fourkey factors that can influence businesses in general and applies them to a particular market.
Those factors are political, economic, social, and technology. A PEST analysis of the cloud computing market will help AWS what strategy they should use to further their growth and success.
Political
Politics can have a major influence on market performance in any industry. Governments can impose regulations and set up legal barriers that can impact how AWS does business (Investopedia, 2019).
AWS is usually most directly impacted by political stability and corporate tax laws.Political instability and government changes are external factors that AWS must contend with. When a new political power takes office, it can bring on either positive or negative effects to businesses’ activities.
One of the government’s primary goals is to provide economic stability where businesses can operate, grow, and thrive (Investopedia, 2019). If a country is politically stable, then it will promote fair competition and apply the rule of law to businesses that operate in the country.
A company will take on massive risk if they decide to expand into a politically unstable country because of the uncertainty of the rules and regulations

MBA 515 MBA515 MBA/515 Milestone 3 PEST Analysis.docx – Cloud Based Computing

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