There has been a rumour floating around lately that Amazon is going to be introducing Ethernet switches. A move like this by Amazon will eventually challenge manufacturers like Cisco Systems. I have came across a video from Packet Pushers where Greg Ferro talks about the possibilities and avenues which Amazon would take to venture into the switching or even networking arena.
As Greg stated, Amazon, in this case AWS already run their own network on their own hardware and software. This is because they cannot have a profit margin by relying on another vendor. It would be cheaper in the long run, to run on your own hardware and software managed and manufactured by themselves. Furthermore, it will be near impossible to run the biggest cloud architecture in the world and run the network on some other vendor. They would most likely run their underlying network as a fabric, controlled by Software Driven Network SDN such as OpenFlow and run the rest of the architecture virtualized and controlled by the AWS console.Read more