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How Amazon’s AWS Sees Growth Exceeding 40% Annually

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Amazon Web Services had a robust 2017

Amazon’s (AMZN) cloud-computing platform, Amazon Web Services (or AWS), had a strong 2017. As the chart below shows, AWS saw its revenues grow from $3.6 billion in fiscal 1Q17 to $4.1 billion and $4.5 billion in fiscal 2Q17 and fiscal 3Q17, respectively. Part of this growth can be due to the boom in the cloud-computing market. In general, cloud providers are growing at a remarkable pace.

AWS, the pioneer in cloud computing, is far and away the leader in the segment. While Microsoft’s Azure platform is seeing its revenues almost double year-over-year, AWS is still growing at a stunning rate for its size.

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How AWS is planning to grow in 2018

Amazon is behind in terms of machine learning AI (artificial intelligence). However, the tech giant is ahead of the curve in terms of product-specific AI with Alexa and Echo. With the cloud segment likely to continue its current growth trajectory in 2018, AWS could parallel that trend.

Cloud computing in China (FXI) could explode over the next decade, which AWS has noticed. AWS inked a deal with Ningxia Western Cloud Data Technology in December 2017, which involves opening a computing region in Ningxia, China.

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