The analysts Karl Keirstead and Ross Sandler from Deutsche Bank suggested that Amazon AWS service is the most potential business department. They thought that AWS service performs better than other business sections.
In terms of AWS revenue, AWS receives 6 times revenue as its biggest rival Microsoft Azure. Now, AWS becomes the most powerful service in the whole enterprise technical industry.
They said even though Marc Benioff from Salesforce is the iconic figure in software industry, Andrew Jassy from AWS might be techinical supervisor that being undervalued in technical industry.
AWS service was launched in 2006 to meet the demand for data storage, data processing, IT support for the enterprise users. The analysts felt its operation mode is similar to Uber’s and Airbnd’s.
AWS revenue received $2 billion according to its third quarter financial report. The net profit is $500 million.
AWS just received $750 million revenue in the third quarter of 2013. The sharply revenue growth made AWS became the faster grown rate technical company. It became the biggest department of Amazon shortly.
The added:”The growth rate of AWS is about 40%-50%, and it will drop to 30% in a few years. Amazon’s retail business gross profit may keep with the growth rate at 15%. So AWS scale will be larger than Amazon’s core retail business in 2024.”
It is not boasted as AWS revenue accounted for 52% of Amazon total revenue in the third quarter. Its profitability exceeds Amazon’s other sections.
So far, AWS clients are from Netflix and US CIA.
The analysts claimed that AWS still has potential to receive better revenue contributes to Amazon’s dominate position and its public cloud service.
