Amazon’s $5 billion cloud saga: What’s in it for India

Amazon amazed everyone by breaking out financial details of its secretive cloud computing business. Chief Executive Jeff Bezos, during first quarter earnings call, revealed that Amazon Web Services is “a $5 billion business and its growth is accelerating.” For the quarter, the e-commerce giant logged $1.57 billion in revenue, up almost 50 percent. AWS – which is Amazon’s cloud unit – accounts for about 7 percent of the company’s total revenue.

“AWS is a success in the Indian SMBs and startups segment,” said Greyhound Research founder Sanchit Gogia. “India is a very heavy base of SMBs and startups. Startups here prefer going on the cloud as investing in hardware infrastructures could be a costly proposition for them. Multiple data centres across the globe, easy licensing, Linux support, and no history of tech investments, and cost makes AWS favourite among Indian startups.” Twitter_logo_blue

“In India, Amazon Web Services has got the highest market share in the startups segment, followed by IBM and Microsoft,” he added. Whereas, large enterprises in India are more with IBM, Microsoft, and Salesforce as they want better storage to suit their complex IT environments. Companies might prefer AWS platform for database, CRM, but not for ERP and BI & visualization, Gogia said. “IBM, Netmagic, AWS, and Azure are top four cloud vendors in India, and Google is doing well on the SaaS side,” Gogia noted. Twitter_logo_blue

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