AWS revenue on track

Amazon Web Service’s revenue is on track to hit the $1 billion mark in the fourth quarter.  This means that AWS will have generated an estimated $3.2 billion in revenues for parent company Amazon.com in 2013.  This makes AWS, by far, the largest cloud computing player.

These estimates, as reported by InformationWeek, came from “Technology Business Research analysts Jillian Mirandi and Michael Barba, [which] were released Thursday during a teleconference held by Amazon CFO Tom Szkutak. AWS revenues in the third quarter alone are estimated at $850 million, more than double those in the third quarter a year ago. In both the second and third quarters, AWS revenues grew by 136% over the same periods a year earlier, according to TBR analysts. Service revenues generated by AWS represent 84% of the monies in the ‘other’ category, they said.”

The growth of AWS is very much expected, considering that they lead the way for other cloud providers.  Most enterprises believe that AWS is the low risk choice for a pubic cloud computing provider.  Moreover, AWS technology has proven to be cost effective.  Finally, AWS has systematically lowered prices over the last several years.