While Amazon is pretty secretive about how much revenue its cloud infrastructure business brings in, a report on Friday by Quartz says the figure is close to $2.4 billion per year.
According to the report, the slides in Amazon’s recent earning report, one chart indicates that revenue from AWS, advertising services and co-branded credit cards totaled $750 million in the first three months of 2013.
Quartz breaks it down in more detail in its post, but it finds that AWS made $600 million last quarter, which would translate to $2.4 billion this year.
“How does that compare to Amazon’s competitors in this space? Surprisingly, it’s within spitting distance,” Christopher Mims says in the Quartz report. “Cloud services provider VMWare, for example, threw off $1.19 billion in total revenue in its most recent quarter, a dip of 9.3 percent from a year ago. That’s twice what Amazon’s cloud is apparently generating, but Amazon is charging much lower rates for its wares, so by some other measures, this division of Amazon might be comparable in size to the whole of VMWare.”
“Is Amazon taking business away from VMWare and other cloud service providers? If the public statements of VMWare CEO Pat Gelsinger are any measure (“if Amazon wins, we all lose“) the answer is: It’s likely.”
Talk back: Do you think Quartz’s math is correct? If so, what does it mean for competing with AWS on public cloud? Let us know in a comment.