With more and more companies moving to the cloud to outsource their computing requirements, Amazon.com Inc. (NASDAQ:AMZN) has emerged as a leader in the basic cloud computing space due to its scale of operations. The achievement is largely due to Amazon outspending its rivals in building data centres and an incredible ecosystem comprising of servers, storage, networking and other hardware to support firms with the raw computing components for a variety of needs, which would otherwise cost them a fortune to run it from an in-house data centre.
The move is paying off for Amazon with the company reporting annual revenue of $15.5bn from its Amazon Web Services (AWS), constituting about half of its $32.4bn in total revenues. In terms of market share, AWS has expanded to capture about 27% of the total market with Microsoft Corp. coming a distant second at 15%.
In a bid to meet the rising demand from businesses looking to deploy advanced capabilities including data analytics and artificial intelligence, Amazon is expanding its network of data centres in the Middle East, Italy, Indonesia and South Africa by scaling its availability zones across the twenty-plus geographical regions where it currently operates.
With revenues from the global cloud computing infrastructure market expected to jump three-fold in the next three years, Amazon is well placed to continue being the most dominant player in the industry.