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Growing giant Amazon’s cloud with $7.3 billion business

During the biggest technology conference in the field of cloud computing business in Las Vegas, Amazon announced some amazing figures. 

The annual Re: Invent conference was organized in October in Las Vegas by the Amazon Web Services (AWS) offering cloud computing services. In the conference, the impressive business results and statistics in recent times were released.

The striking information disclosed has proved that Amazon has become one of the cloud computing giants. The AWS business in particular has valued up to USD 7.3 billion, along with the fact that the number of corporate customers has reached to 1 million. The enterprise database service has specifically gained revenue of USD 1 billion.

Amazon revealed that earnings of AWS business area has increased by 81 percent to USD 1.8 billion compared with same period last year as well as being the cloud computing provider with the most rapid growth rate in recent years.

The Washington-based company also reported that Amazon Elastic Compute Cloud service (EC2) providing the service of calculating and data processing on the cloud achieved the remarkable growth rate of 92 percent. The earnings of Amazon Simple Storage service (S3) supplying data storage service has impressively grown up by 120 percent and the revenue of other database services has increased by 127 percent.

“AWS is no longer just for startups or just for technology companies but has infiltrated mainstream business models and we expect adoption to be very strong for the foreseeable future,” RBC Capital Markets analyst Mark S. Mahaney wrote in a research note.

One of the most prominent cloud computing giantsIBM, has its business valuation of just USD 8.7 billion. Compared with the value of Amazon, it is apparent to realize that Amazon has gained success when being a giant specializing in online retails to intrude on cloud computing service segment and competing against IBM. One of the most important factors is that Amazon has not mainly focused on the ordinary consumers, but targeted the enterprise customers as an alternative. It is considered one of the reasons turning AWS into a formidable opponent and a threat that could not be underestimated for not only IBM, but also other cloud computing providers such as Azure of the software behemoth MicrosoftAmazon has officially cooperated not long ago with Rackspace to expand the customer base to the corporate consumers.

Amazon Web Services is the cloud computing basis of Amazon providing resources and computing to support any enterprises to smoothly operate their system with a budget cost.

The hardware infrastructure system establishment, management, operation and maintenance is no longer to be concerned too much with services of AWS. Enterprises using this cloud computing service of Amazon could now manage the macro business instead.

Cloud business is considered a fertile field that is previously dominated by IBM and lately welcomed the cloud computing service Azure of Microsoft to enter into. In spite of its huge potential of development and returns, the segment of cloud computing is not a market for any companies to join. Only companies with strength of finance and power are feasible to compete and catch attraction of customers as big enterprises.


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