The Cloud Wars Are Over…Victory Amazon

Date posted: 23rd October 2015

Amazon’s 3rd quarter results show a shift to becoming a cloud company with a e-commerce business on the side.

IT and Cloud Provider Giant Amazon (they also have an eCommerce site) recorded surprise profit for the second straight quarter with growth in Amazon Web Services leading the way. Company shares rose 11 percent on the news.

Amazon has historically re-invested profits from its main consumer division into new business keeping profits relatively flat while innovating for the future. This has resulted in significant gains in their IT cloud business which we believe we disrupt the entire IT industry over the next few years.

Net sales from Amazon Web Services, which has over 1 million customers in 190 (out of 196) countries, rose 78 percent in Q3 to $2.09 billion.

Quoting BGC Partners Analyst Colin Gillis “There are questions about what’s the sustainable margin for this? Are we seeing just a hyper growth phase now? But for right now, AWS [Amazon Web Services] is driving the train, and it’s going to for the near future,”

By far Amazon’s fastest growing business is cloud computing, and the company recently announced several new features at the re:Invent conference such as Internet of Things and improved Cloud Security to help accelerate growth and meet the rising demand against most established IT companies such as Cisco.

As analyzed yesterday we see Amazon Web Services becoming the disruptive force in 2016 and beyond IT. IT Managers are encouraged to learn more about the benefits, enterprise-class security, flexibility and agility provided by the Public Cloud and associated services.

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