|By Maureen O'Gara||
|December 3, 2012 06:15 AM EST||
RW Baird analyst Colin Sebastian takes Amazon Web Services for a "potentially under-appreciated asset" although he thinks it'll do $1.5 billion in revenue this year.
It takes a lot of capital outlay to support, roughly $500 million or about 50% of total 2010 capex, Sebastian thinks, and says its profitability is unproven.
Amazon doesn't break out AWS numbers but has put its IaaS market share at about 60% and AWS boss Andy Jassy said this week that the cloud unit has the potential to be Amazon's biggest business, outgrowing its online retail parent.
Sebastian figures Amazon's biggest rival right now is Google, which just cut prices. Google and Microsoft have deeper pockets and larger R&D budgets. Other companies like Rackspace, Dell and HP could give Amazon a run for the money.
- Source Claims SCO Will Sue Google
- Latest SCO News is Plain Weird
- SCO Claims Linux Lifted ELF
- IBM Tells SCO Court It Can't Find AIX-on-Power Code
- HP Starts Pushing Desktop Linux
- Linux Business Week Exclusive: Linux Kernel To Be Re-Written To Counter Microsoft FUD
- CSN Asks Judge To Unseal the SCO-IBM Court Record
- IBM's Got Its Head in the Clouds
- Noorda's Daughter Committed Suicide
- SCO vs IBM Latest: SCO To Request Unsealing of Most Documents, Claims O'Gara