Affiliate cloud service from Amazon, Amazon Web Services (AWS) is the IT organization whose growth is fastest in history ensures Karl Keirstead, an analyst with Deutsche Bank. Calculator in hand, he considers that the valuation of AWS in 2017 should reach 160 billion dollars, the valuation of IBM currently. Oracle’s share valued at $ 170 billion. In 2017, AWS revenues would be 16 billion dollars.
It must be said that Amazon Web Services (AWS) is set to become the jewel in the crown of Amazon. AWS is the first source of profit Amazon in the third quarter 2015, representing 52% of operating profits from Amazon, 36% the previous quarter. The operating profit is 521 million for a turnover of 2.08 billion (+ 78% yoy). The e-commerce activities, causing the creation of Amazon, relate only $ 472 million. On 2015, AWS expects to exceed $ 7 billion in revenue.
These positive results are part of a long-term strategy that was not always profitable. If Amazon was one of the first companies in 2006 to commercialize the use by others of its IT infrastructure, this activity which requires heavy investment has long weighed on the company’s results. This is no longer the case, and million customers claiming that AWS now provide him healthy profits.
The potential of the cloud activity is still undervalued by the financial markets
L The analyst says that the potential of the cloud activity is still undervalued by the financial markets. Where a forecast on the valuation of AWS which is about 10 times the expected annual income of the company.
Karl Keirstead also believes that the AWS income is six times higher than those of Microsoft Azure, second player on the podium cloud infrastructure providers.
The public cloud generated $ 16 billion in revenue in 2014, up 48% from 2013. And if AWS s’ establishing itself as the market leader actor, Microsoft, IBM and Google also see their business grow sharply. Microsoft quarterly results show for example that the use of the Azure cloud platform more than doubled in a year.