Amazon
Amazon Web Services, or AWS, is one of the biggest reasons to invest in the retail and technology giant, but it’s not just about cloud computing infrastructure alone. It’s about what is driving that growth in their infrastructure business.
The fastest growing workload on cloud is Cognitive and Artificial Intelligence, according to IDC.
Among the top 12 such workloads growing at double-digit rates are also Business Intelligence, IoT and Big Data Analytics, all of which use machine learning in one form or other, including deep learning.
This is the real reason AWS is a good bet to make, not its retail growth or the growth of Prime memberships or even the growth of its own cloud infrastructure. It is the moving of AI-related workloads that offers an upside that not many investors are aware of. This is the real growth driver for AWS, and it doesn’t look like it’s going to be losing steam any time soon.
AWS is, by far, the most profitable of all Amazon’s initiatives, if not the highest revenue-earning division. More relevant to investing in Amazon is that AWS is still growing at a year-over-year rate of +45% in terms of net sales, compared to 13.4% for International and 35% for North America retail.
The 40% growth rate level seems to be their support figure. As you can see from the chart below, after threatening to breach 40% on the downswing, AWS has once again started growing in the mid-40% range.
To Be Continued…
