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Amazon Web Services is growing faster than Salesforce



But that was then. AWS is now the profit engine behind the parent company. As the company clarified in detail at its annual re: Invent conference this week, legacy technology vendors' growth aspirations should be very high.

More than 50,000 attendees flocked to Keynotes, breakout sessions, the Las Vegas Strip, demos, and developer training for five days. Another 100,000 streamed parts of the conference were online.

In the early years, AWS had begun deploying remote servers that could be used by startups or developers to launch a Web site or project. As companies became increasingly dependent on AWS's core computing and storage offerings, Amazon began rolling out nearby products such as databases, a content delivery network, and a data warehouse service. Subsequently, the product upgrade began to be used in highly regulated industries such as banking and health care.

Amazon now offers 1

40 services that a growing number of companies use for their core computing.

The cloud infrastructure will not be abandoned either.

AWS said this week it has developed its own artificial intelligence chips, followed by Google in silicon for the AI. Amazon said it will soon begin integrating its technology with branded hardware into other companies' facilities to enter the world of Cisco, Dell, and Hewlett Packard Enterprise physical data centers.

"and AWS 'partner is that as competition increases, competition continues to express itself, and AWS' continued focus on newer products, services, and depth of features makes it clear," wrote Ronald Josey, analyst at JMP Securities, on Thursday in a report. "The announcements this week confirm this view."

On Wednesday, Brent Thill, a Jefferies analyst, wrote to the client saying, "AWS Cloud momentum was still visible in the conference after 3+ days." [19659002] Thill, which recommends the purchase of Amazon shares, estimates that AWS could potentially be worth $ 350 billion with $ 2022 of potential revenue of $ 71 billion. This market value is higher today than any out of eight US companies, including Amazon. Salesforce currently has a market capitalization of $ 107 billion after a rally of 40 percent this year.

Investors should not, however, be wary of a potential AWS spinoff. The $ 2.1 billion operating profit generated by the unit in the last quarter represented 56 percent of Amazon's total operating income and provided significant funding to CEO Jeff Bezos to invest in other lower-margin businesses. "I will never talk about anything "but" We have no plans to leave Amazon. "

" Typically, companies will split groups if they do not want to do that for some reason, or if they have access to their books Capital needed that she can not get as part of a broader business, "Jassy said." Amazon was so incredibly generous that in the 15 years we worked to aggressively fund AWS, we really did not need extra capital . "


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