A new 43-page in-depth report by financial analysts at Morgan Stanley shows that Wall Street is bullish on Amazon Web Services.
The report states that AWS’s cloud-based products and services are competing in markets where revenues total $238 billion. Morgan Stanley predicts that AWS could have $20 billion in revenue by 2020.
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AWS is disrupting all sorts of businesses, the analysts concluded. Most at risk are companies like IBM, which is seeing its profit margins fall as AWS’s profits rise. NetApp, EMC, and Hewlett Packard Enterprise are also challenged by the move from on-premises to public cloud-based workloads, the analysts contend.
“We now assume the most likely scenario is that companies of all sizes will run workloads in the public cloud as compared to our previous assumption that adoption may be limited to (small and medium sized businesses),” the analysts reported, according to Barrons.
AWS most recently said it earned about $2.1 billion in revenue last quarter, putting it on track to make $8 billion annually, with a multi-hundred million dollar profit.
By comparison, Cisco earned $49 billion in revenue in its 2015 fiscal year; Microsoft earns $93 billion in revenue and IBM $92 billion annually.