Amazon Web Services poised for explosive growth

Amazon Web Services is set to flourish in the coming years as the IT sector shifts to the cloud, a tech analyst and its CEO say.

Amazon's cloud-computing service is on track for a $3 trillion valuation — three times what the entire company is worth now — and could eventually be split from the tech giant's slower-growing retail business, Redburn analyst Alex Haissel wrote in a report cited June 29 by Bloomberg.

"It's possible that AWS could become the largest business at Amazon," Amazon Web Services CEO Adam Selipsky told CNBC June 28. "Essentially, IT is going to move to the cloud. And it's going to take awhile. You've seen maybe only, call it 10 percent of IT today, move. So it's still day one. It's still early. … Most of it's still yet to come."

Amazon's cloud service is poised for more growth than that of its rivals, Microsoft and Google, because of its lower cost and superior technology, the Redburn analysis reported by Bloomberg stated. But Bloomberg Intelligence analyst Anurag Rana disagreed.

"Microsoft could be better positioned than Amazon Web Services and Alphabet’s Google as enterprises accelerate their shift to a hybrid cloud model, given its strong footprint in on-premise IT infrastructure," Mr. Rana said, according to the report.

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