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The numbers speak: Amazon cloud soon to be a billion-dollar business

By | August 3, 2010, 1:20pm PDT

For anyone wondering about the economic viability of publicly delivered, platform-as-a-service cloud computing, here’s something to ponder: Amazon Web Services is on track to become a $1 billion business within the next three years. Business Insider quotes UBS analyst Brian Pitz, who estimates the annual revenue for AWS at about $500 million this year, growing to $750 million next year.

Amazon’s Web services business alone may have a valuation of about $3.4-$3.8 billion, Pitz estimates.

Of course, things change awfully fast in this industry, and today’s multi-billion-dollar trend becomes tomorrow’s stone-age technology. But still, there appears to be an impressive market for public cloud services. Something for other IT shops with spare capacity to consider.

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Viability, Amazon.com Inc., Joe McKendrick

Joe McKendrick is an author, consultant and speaker specializing in trends and developments shaping the technology industry.

Disclosure

Joe McKendrick

Joe McKendrick is an independent consultant, editor and speaker.

Joe has performed project work (white papers, articles, blogs, research and presentations) for the following companies in the IT marketspace:

  • CBS Interactive/CNET/ZDNet (this blog)
  • ebizQ
  • Evans Data
  • Gartner
  • IBM
  • Informatica
  • IDC
  • Microsoft
  • Systinet/HP
  • Teradata
  • Unisphere Reseach, a division of Information Today, Inc.
  • WebLayers

Joe has also performed research work for the following sponsoring organizations in partnership with Unisphere Research, a division of Information Today, Inc.

  • IBM
  • Luminex
  • Noetix
  • Oracle Corp.
  • Teradata
  • Informatica
  • International Oracle Users Group
  • Oracle Applications Users Group
  • Professional Association for SQL Server
  • International DB2 Users Group
  • International Sybase Users Group
  • SHARE (IBM large systems users group)

Biography

Joe McKendrick

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. Joe is co-author, along with 16 leading industry leaders and thinkers, of the SOA Manifesto, which outlines the values and guiding principles of service orientation. He also speaks frequently on Enterprise 2.0 and SOA topics at industry events and Webcasts, and serves on the program committee for this year's SOA & Cloud Symposium in London. As an independent analyst, he has also authored numerous research reports in partnership with Unisphere Research, a division of Information Today, Inc. for user groups such as SHARE, Oracle Applications Users Group, and International DB2 Users Group. In a previous life, Joe served as director of the Administrative Management Society (AMS), an international professional association dedicated to advancing knowledge within the IT and business management fields. He is a graduate of Temple University.

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