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AWS Might Do $1.5 Billion This Year

Amazon doesn’t break out AWS numbers but has put its IaaS market share at about 60%

By Maureen O'Gara
Article Rating:
December 3, 2012 06:15 AM EST
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 3,020

RW Baird analyst Colin Sebastian takes Amazon Web Services for a "potentially under-appreciated asset" although he thinks it'll do $1.5 billion in revenue this year.

It takes a lot of capital outlay to support, roughly $500 million or about 50% of total 2010 capex, Sebastian thinks, and says its profitability is unproven.

Amazon doesn't break out AWS numbers but has put its IaaS market share at about 60% and AWS boss Andy Jassy said this week that the cloud unit has the potential to be Amazon's biggest business, outgrowing its online retail parent.

Sebastian figures Amazon's biggest rival right now is Google, which just cut prices. Google and Microsoft have deeper pockets and larger R&D budgets. Other companies like Rackspace, Dell and HP could give Amazon a run for the money.

Published December 3, 2012 – Reads 3,020
Copyright © 2012 SYS-CON Media, Inc. — All Rights Reserved.
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More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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