Did Amazon Already Win Cloud Computing?
June 3, 2013
Grazed from WallStreetCheatSheet. Author: Eric Schaal.
How far can Amazon (NASDAQ:AMZN) go in the cloud computing game? Though Amazon Web Services is already believed to be clocking around $2 billion a year, a report indicates that number could grow to an imposing $24 billion in the next decade, which would make Amazon a terror to all competitors and possibly give the tech giant a monopoly in the industry.
A report by Morgan Stanley analysts sees Amazon in the top five and gaining fast in cloud computing, which they believe will have a TAM of $152 billion ten years from now. As for the inevitability of a world turning entirely to cloud services by 2022, that’s considered a given, and bad news for companies like NetApp (NASDAQ:NTAP) and EMC (NYSE:EMC). Of course, someone will need to be the host, so the market for servers won’t entirely disappear, Morgan Stanley’s analysts noted…
The other aspect of Amazon’s all-out assault is in the enterprise software realm. VMware (NYSE:VMW) is on notice in this department, as is Microsoft (NASDAQ:MSFT) itself, since AWS is building database and storage potential. While such analyses of Amazon Web Services’ power may sound overblown, Macquarie took a similar view earlier in the year, giving AWS the overwhelming share of a projected $71 billion business by 2015…
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