AWS, Azure and Google Cloud should leverage proprietary applications as a growth lever, particularly if the Federal Government forces a breakup of these cloud platforms from their respective parent companies.
Oracle pioneered the strategy of extending the value of its database and infrastructure software by adding applications to its product portfolio. Oracle chose to grow its application layer primarily through acquisitions of high profile companies (at the time) such as Siebel Systems and PeopleSoft. AWS, Azure and GCP ought to acquire companies in order to extend the value of their respective cloud platforms. This strategy could also create additional revenue touch points for AWS, Azure and GCP partners. Admittedly, there is the risk of scaring away prospective partners and causing existing partners to fret. Yet, we value a dollar of revenue generated from a proprietary product more so than a dollar of revenue generated from a partner relationship. Why? The reason is because the former is a function of intellectual property which carries more value on a per unit basis than a business development operation.