Amazon.com, Inc. (NASDAQ:AMZN) is crushing its competitors in the small and medium sized cloud app service market with its AWS service, according to survey results from Pacific Crest.
Amazon Web Services (AWS) has grown to a massive $10 billion annual revenue business, and it got its start by offering cloud services to small businesses. Its appeal to those same firms hasn’t waned one bit since then, with more and more small- and mid-sized firms continuing to turn to AWS for its hosting needs. From Business Insider:
Pacific Crest surveyed about 300 companies with a 2015 median revenue of $5 million. A whopping 50% of the respondents picked AWS as their choice of cloud service. That compares to Microsoft’s 4% share and Salesforce’s 2% share this year. The “Other Third Party” category, which likely included Google’s cloud service, accounted for 10% of the respondents.
That lead is expected to continue to grow in coming years. Survey results indicate AWS will control 64% of the market in 2019:
Last year, AWS controlled about 40% of the small- and mid-sized cloud market, so the growth in that area has been very impressive. AWS is attractive to smaller companies because of its low costs, high uptime, and near-instant deployment. A company looking to host a massive database, for example, can get a cloud server up and running via AWS in just a few minutes.
Amazon shares fell $3.83 (-0.47%) to $813.86 in premarket trading Thursday. Year-to-date, AMZN has gained 20.89%, versus just a 5.11% rise in the benchmark S&P 500 index during the same period.