From Barron's Tech Trader Daily:
Morgan Stanley’s Scott Devitt, in a longish (32 pages) report in conjunction with colleagues Keith Weiss, Ehud Gelblum, Simon Flannery, Katy Huberty, Joseph Moore, and Adam Wood, this morning writes that Amazon.com (AMZN) is “making waves” in conventional IT by “applying retail economics” that is making it an “emerging IT mega-vendor.”
Devitt, who has an Overweight rating on Amazon shares, writes that Amazon’s “Amazon Web Services,” which runs compute tasks on its servers for a fee, should be able to reach $24 billion in revenue by 2022, through a combination of services that produce greater scale in computing tasks, and by offering “a continual downward pressure in pricing.”
The authors size the total addressable market for Amazon Web Services at $152 billion, and offer a graphic for that:
The team thinks that Amazon could “impact” between 3% and 17% of traditional IT spending, with traditional compute tasks, storage networking, and outsourcing being the areas of IT that are most at risk of being scooped up by Amazon....MORE"This fourth beast is the fourth world power that will rule the earth. It will be different from
all the others. It will devour the whole world, trampling and crushing everything in its path.
-Daniel 7:23 (NLT)
