Amazon predicts rise in cloud computing demand

Amazon predicts rise in cloud computing demand

Online retail giant Amazon has announced that it is to expand its Amazon Web Services division, which supplies cloud computing and storage facilities to other organisations.

Amazon Web Services (AWS) division is already one of the retailer's fastest growing sectors, with The Australian newspaper reporting that the area is in line for an 81 per cent increase in revenue over the course of this year. Currently, the sector has a recorded revenue of $US2.1 billion, and this is predicted to rise to $US3.8 billion this year, says Macquarie, the provider of banking, financial, advisory, investment and funds management services.

The rise predicted for AWS is in contrast to the rise predicted for Amazon's retail revenue, which, whilst still an impressive increase of 25 per cent, pales in comparison to the 81 per cent suggested for AWS.

Macquarie also suggests that the AWS market will hit a startling $US38 billion by the year 2015. The Australian reported that Chief Executive at Amazon, Jeff Bezos, says that cloud computing is still 'in an early phase', and that its adoption will be a 'decades-long process'. Current users of AWS include AirBnb, music giant Spotify, Netflix and online scrapbooking and social networking site Pinterest.

Such clients find the cloud computing elements of AWS extremely useful in helping them to create their infrastructure and assisting them in testing and developing new product lines. Other clients converting to the cloud computing way of thinking include government agencies and pharmaceutical companies, as they find the cloud-based structure helpful in processing the large amounts of data they have to deal with on a daily basis.

Businesses looking to move services into the cloud, should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.