Amazon may have to compete against AT&T as AT&T is offering something that is similar to Amazon Web Services known as AT&T Synaptic Compute as a Service.  This service is best for people who want to start a business that’s in need of the ability to scale servers.  This service is also great for web developers who need a quick way to fire up a server at a cheap cost and using a pay as you go model.

Amazon has a head start, but if AT&T provides competitive prices, then Amazon may have to worry.  Cloud compute structure may have stability problem if AT&T or Amazon is not carefully managed.  Customers may sway between both companies depend on stability of the services.  As now, AT&T is only offer AT&T Synaptic Compute as a Service to customers that are living in the U.S., but Amazon has been offering Amazon Web Services to U.S. and Europe.  Source.