"Amazon probably believes that AWS gives them a leg up on Google or Apple," Gownder stated. Both analysts had thoughts on what advantages the company had that could help with taking on Microsoft. Tough as it will be for Amazon to make a dent, it's certainly possible. "And it must have been looking enviously at its competitors during the pandemic where this gap was heavily exposed." "AWS has always had a glaring omission in its corporate strategy in lacking a large-scale, higher-margin, software-as-a-service business," he said. Nicholas McQuire, the chief of enterprise research at CCS Insight, also said that Amazon would face a "huge struggle" in its attempt to combat Microsoft 365.
Though rivals to Microsoft 365 have been rumored, a real competitor has yet to emerge.
Amazon attempting an even greater challenge than that in the form of one-on-one-ing Microsoft in the productivity app space would require incredible amounts of resources and still be far from a safe bet. Given how it failed with the Fire phone, success isn't guaranteed. Gownder expanded on Amazon's struggle by pointing out its track record with regard to entering new markets. And the power of incumbency is important here, as so many documents in the world have been built to Microsoft standards." Microsoft has vast stores of user data and IT data on usage. "Microsoft has defined the metaphors of how productivity happens, building upon the IP of others but systematizing their operations, integrating them across different scenarios, and training a generation of workers in their usage. "As we've seen with Google and, to a lesser extent Apple, taking on the Microsoft Office (and 365) behemoth is no easy task," Forrester Vice President and Principal Analyst J.P. Even when approached from the angle of " how can Amazon do it," rather than "can Amazon do it," experts still reiterated that the task at hand was immense and potentially unfeasible.
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