AMAZON WEB SERVICES COULD BECOME THE LARGEST BUSINESS FOR THE INTERNET GIANT
Following Amazon’s announcement on its financial results, Jeff Platón, Chief Marketing Officer at Interactive Intelligence says that within these figures lies a “watershed moment” for the company and the market as a whole.
“Amazon’s financial results this quarter are both impressive and important – as this is the first time in its nine-year history that financial details for Amazon Web Services (AWS) have been released,” says Platón. “The company reported that it generated $22.7 bn in worldwide revenue during the last quarter, with AWS generating $1.57 bn, accounting for 7% of the retailers total revenues.
“This is a watershed moment, as it not only shows that the demand for cloud computing is booming, but it also provides insight in to the changing behaviours of organisations as they move to the cloud.”
Gartner claim that the total market for public cloud services is is $180bn this year and it will rise to $207bn in 2016. Platón says this is why cloud vendors like Amazon, Google and Microsoft are prioritising work on their cloud platforms.
“Recently Andy Jassy, SVP of AWS, even said that he believes AWS has the chance to someday be the largest business at Amazon. That’s truly astounding when you realise that Amazon’s retail business is worth $61bn.
“It’s clear that cloud technology is the future of computing. AWS is the foundation for our latest cloud offering, which we believe will vastly accelerate our cloud business well beyond its current rapid clip. And from discussions with our customers, we’re seeing a significant change as businesses shift away from legacy solutions and move their operations to the cloud. The technology is allowing businesses of all sizes to drive down costs and increase efficiency – even levelling the playing field for SMEs.
“At the moment the cloud is cheap and convenient for both consumers and businesses, but as the market matures, vendors will continue to look for ways to monetize the industry. Today’s announcement of AWS’ financial results is significant as our everyday lives continues to morph into a truly cloud focused world.”.