Amazon Revels in Revenues from its Ever Expanding Cloud Business

There is no denying the fact that the Cloud has taken the world by storm (pun intended). As soon as Amazon revealed it’s financials within the financial world, Wall Street was abuzz with a lot of commotion. Believe it or not, but the Amazon Cloud is a $4.6 billion business, which is continuously growing. Even though this financial volume might seem to be trivial as compared to the total revenues generated through Amazon’s online retail business, nevertheless, it is a significant jump as compared to the rest of the similar providers in the market currently.

As per Amazon’s books, AWS grew around 49 percent in the year 2014, wherein it managed to earn $4.6 billion in revenues. In the first quarter of 2017, AWS has already amassed $1.57 billion in revenues, which is fast approaching the sales forecast of $6.23 billion by Q4. Despite the massive growth, AWS forms only 7% of the company’s overall revenue model. But this has not stopped Amazon from raising its hopes with the advent of AWS over the years.

Without doubts, the growth of AWS is an important milestone when it comes to ruling the Cloud market in terms of customer outreach and profitability. If the trends are to continue, Amazon might soon be known as a leader in the Cloud industry rather than just an online retail store leader.

Amazon leading the Cloudy way

AWS, Amazon’s Cloud venture has lead the company’s outreach in terms of providing extensive computing power over the Internet. One might wonder how AWS Cloud comes to the rescue of service seekers. The answer is rather simple; by taking the lead, Amazon is able to rent out Server space, storage systems and other software to businesses and developers, who need to stay afloat on the Internet.

With the advent of the Cloud know-how, technology giants like HP, Oracle, Dell and many others are slowly withering away. These giants used to sell hardware and software to companies and developers to setup within their own premises. While this proved to be a costly affair for the developers, it was nevertheless a profitable venture for the tech giants selling the hardware and software.
With the estimates rolling in, Amazon and its venture AWS will slowly gnaw its way to revenues of $40 billion in the next five years. As per Boston Consulting Group’s senior partner, Amazon is a leading service provider in the Cloud industry and will they will continue to lead the markets till the onset of the next few years.

Since Amazon is the undisputed leader in the world of Cloud technology, there is a lot riding on its Cloud business. However, the share of the market is on a constant decline, since there are a lot of entrants in the market currently. With Microsoft and Google also joining the Cloud business there is a lot of competition which is posing a threat for AWS’s share in the market. With a lot of investments in the new data centers, Amazon has to avoid being too smug about its increasing revenues, in order to remain grounded and excel in the ever expanding competitive market.