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IDC White Paper | Fostering Business and Organizational Transformation to Generate Business Value with Amazon Web Services
Key Cloud Computing Revenue Growth Trends
Figure 1 provides a graphical view of the worldwide public IT cloud services market
segmented by primary market. Vendor revenue associated with IaaS and PaaS is projected
to grow by about 36% through 2021. This growth illustrates cloud adoption and speaks to
the immense value that organizations place on agility gained by developing and deploying
innovative applications on highly available public infrastructure procured at lower costs.
OVERVIEW OF AMAZON WEB SERVICES
PORTFOLIO
Amazon Web Services started as a result of responding to Amazon's large-scale ecommerce
operations need for a highly scalable infrastructure. In the early days, primarily a set of low-
level services like Amazon Elastic Compute Cloud (Amazon EC2) and Amazon Simple Storage
Service (Amazon S3) was abstracting the infrastructure for users. The delivery of cloud-
delivered services led to rapid adoption by start-ups that found the platform to be flexible,
agile, extensible, and available at a low cost. Responding to continuously evolving customer
needs, over a period of time, Amazon built a wide array of higher-level services, leading to
increased adoption by enterprises that found value in moving from a capex model to an opex
model. Services like machine learning are the foundation for developing smarter applications
making predictions from patterns detected by analyzing data. AWS' portfolio of services are
as follows:
FIGURE 1 Worldwide Public IT Cloud Services Revenue
by Primary Market, 2016–2021
0
20,000
40,000
60,000
80,000
100,000
120,000
($M
per
year)
2016 2017 2018 2019 2020 2021
laaS
PaaS
18,208
25,291
33,444
42,888
53,809
66,822
12.599
17.168
22.750
29.277
37.135
45.772
Source: IDC, 2018
