Comments on: How Big is Amazon’s Cloud Computing Business? Find Out

By: Gary Taylor

Gary Taylor — Wed, 05 Jan 2011 17:05:56 +0000

Brain – Be very interested to see the full report if your offer still stands. We’re doing a lot of work with client on both the supply and demand side for Cloud Services in Europe. Gary

By: Bruce Daley

Bruce Daley — Fri, 27 Aug 2010 15:27:22 +0000

Are the margins really only 50%? For a company the size of Amazon, $500 million, may not sound like a lot but most of that number should be pure profit. As an on-line retailer Amazon has to maintain its computing infrastructure as a cost of doing business. The excess computer capacity they sell after that should be pure gravy.

By: Sachin Nikumbh

Sachin Nikumbh — Tue, 10 Aug 2010 04:48:22 +0000

Good insight Om. Is there any similar analysis or projections or case study for Indian market ? How would this market florish with existing limited bandwidth – product and reach scenerio in India – example for cloud storage / online storage or computing requires high bandwidth of 10 Mbps if not 100 Mbps and more. How would this market aid in development of high bandwidth market in India ?

By: Michael Kuhlmann

Michael Kuhlmann — Fri, 06 Aug 2010 18:01:27 +0000

Pleasure, glad you enjoyed the report. I’ll drop you a line shortly by e-mail.

By: Om Malik

Om Malik — Fri, 06 Aug 2010 16:49:17 +0000

Hey guys thanks for this and pouring through this. drop me an email if possible as well.

By: brainmaven Research

brainmaven Research — Thu, 05 Aug 2010 21:47:08 +0000

Om, you’ve piqued our curiosity so we prepared this report on AWS for you. Our analysis corroborates much of this, uses a few additional sources and also shows some data on the size of the operation. We also talk about the cloud computing scene in general. Our researcher spent 8 hours on this report and we welcome your comments!

Interested readers can find our report (500k PDF warning) here: http://brainmaven.com/media/samples/GigaOm,CloudComputingalaAWS.pdf

By: Alex Leites

Alex Leites — Thu, 05 Aug 2010 18:47:43 +0000

I agree with you. Does anybody know who are the major competitors to Amazon’s web services?

By: Basharat Wani

Basharat Wani — Wed, 04 Aug 2010 14:14:47 +0000

Real good stuff. I was curious to know these details since long time.

Couple of points
I see the margin estimates are extremely low
Missing or lack of competition allowed Amazon to dominate
how real are the above numbers?

Basharat

By: Zaki

Zaki — Wed, 04 Aug 2010 06:21:46 +0000

Huge numbers but they prove to be real. Amazon is really one of the first companies to offer different web services. The only thing I can’t understand why the numbers of revenue grow so fast? Isn’t there some competetion to amazon?! Nevertheless amazon support useful and reliable services so the benefits must be also appropriate

By: Deepak

Deepak — Tue, 03 Aug 2010 18:41:03 +0000

Good to see some numbers! But I am skeptical about their G&A. IF they are running the R&D and Ops for this as a separate business, its going to be higher than $23M. Also these numbers are going to grow faster (see job postings for AWS).

Also related to costs, how much compute are they giving away to developers for free? And are these developers staying on instead of migrating to cheaper hosting providers once they enter production? If they hold the line on prices, they’ll be leaking ISVs.