Amazon Cloud Soon To Be A Billion Business

Amazon's Web Services business could be a billion dollar business in the next three years, if its growth continues on pace.

UBS analyst Brian Pitz says Amazon's web services will kick in $500 million in revenue this year, and $750 million next year. After that, it's reasonable to assume it becomes a billion dollar business.

The chart below show's Amazon Web Services as a part of Amazon's "other" section of its business.

Not bad for a little side business, but it's still peanuts for Amazon's overall business. Pitz estimates net revenue of $44 billion in 2011 for Amazon.

Still, Pitz gives the Web Services business a valuation of $3.4-$3.8 billion. If it continues growing, it could be a nice little business for Amazon to spin out some day.

Things change fast in this industry, and today's multi-billion-dollar trend becomes tomorrow's stone-age technology. But still, there appears to be an impressive market for public cloud services. Something for other IT shops with spare capacity to consider.

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