Investment Firm Expects AWS Will Hit $20 Billion In Revenues By 2020
April 15, 2013
Grazed from TechCrunch. Author: Alex Williams.
Bernstein Research has issued a research report saying it expects AWS will have an estimated $20 billion in revenues by the end of the decade. In a separate report, RW Baird & Co. projects $10 billion in revenue for AWS by 2016 and up to $40 billion in losses from the traditional IT market.
The estimates reflect Wall Street’s growing confidence in cloud services and the need that analysts see in letting their customers know that a shift is underway that will lead to continued flat revenues or even losses for enterprise companies and systems integrators. In times of disruption, something like AWS may actually exceed investment analyst projections. Conversely, AWS success is not a certainty…
Technologies may advance that will flatten AWS advantages or Amazon can’t scale the group’s services fast enough to keep its edge. These are the factors that investment research houses consider when making corporate financial projections. Overall, Baird and Bernstein cite a number of reasons that account for why AWS will do so well. The reasoning is sound but not without weaknesses, such as why AWS success will be harder to come by with large enterprises…
Read more from the source @ http://techcrunch.com/2013/04/14/investment-firms-predict-aws-will-do-as-much-as-20-billion-in-revenues-by-2020-draining-it/