The ascendency of AWS under the leadership of Andy Jassy was marked by a tsunami of data and corresponding cloud services to leverage data. Those services mainly came in the form of primitives – i.e. basic building blocks that were used by developers to create more sophisticated capabilities.
AWS in the 2020s, led by CEO Adam Selipsky, will be marked by four high level trends in our view: 1) A rush of data that will dwarf anything previously seen; 2) Doubling down on investments in the basic elements of cloud – compute, storage, database, security, etc; 3) Greater emphasis on end-to-end integration of AWS services to make data accessible to more professionals and further accelerate cloud adoption; and 4) Significantly deeper business integration of cloud, beyond IT, as an underlying element of organizational transformation.
In this Breaking Analysis we extract and analyze nuggets from John Furrier’s annual sit down with the CEO of AWS. We’ll share data from ETR and other sources to set the context for the market and competition in cloud and we’ll give you our glimpse of what to expect at re:Invent 2022.
First a Quick Update on the Hyperscale Revenue Forecast
Before we get into the core of our analysis, Alibaba has announced earnings and we’ve updated our Q3 hyperscale computing forecast for the year as seen above.
We won’t spend much time on this but suffice to say Alibaba’s cloud business is suffering from the macro trend but is seeing a more substantial slowdown than its peers. China headwinds combined with a restructuring of its cloud business has led to significantly slower growth for Alibaba. This puts our year end estimates for 2022 revenue at $161B for all four hyp ..
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