Amazon Web Services Bigger than All the Rest of Amazon?

Amazon Web Services Senior Vice President Andy Jassy said that CEO and Founder Jeff Bezos believes AWS could be the company’s largest business. That revenues from selling cloud computing infrastructure could be bigger than Amazon’s original e-commerce business is a startling notion.

If Amazon has total revenue in the $61 billion range, that gives you some idea of the potential revenue magnitude Amazon CEO Jeff Bezos believes is possible.

While a ringing endorsement of industry potential, that belief also indicates how tough it might be for other suppliers of cloud computing infrastructure to compete with Amazon.

According to the Yankee Group, cloud computing services might not be a $5 billion U.S. business, at the moment. assuming AWS mostly sells infrastructure as a service.

Forecasts by Forrester Research are comparable.

Separately, AWS also announced availability of Amazon WorkSpaces is a fully managed desktop computing service in the cloud, allowing customers to easily provision cloud-based desktops. That is significant because it moves Amazon into the software as a service segment of the cloud computing business, clearly the biggest revenue contributor.

Amazon Web Services argues that it can supply virtual desktop services at lower costs than competing solutions or traditional desktops.
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