According to Amazon AWS head Andy Jassy, the "cloud has become the new normal" and today he revealed the numbers to back it up.
Speaking at the Amazon AWS Summit in San Francisco today, Jassy revealed that AWS, with its 40% year-over-year revenue growth rate, makes Amazon's cloud infrastructure business the fastest-growing billion dollar enterprise IT business in the world, runner up Salesforce, has grown revenue 26% in the most recent year.
The growth of Amazon's revenue isn't surprising when you looks at the growth in usage of its suite of cloud services. Amazon EC2, which provides on-demand computing resources, grew 93% between Q4 of 2013 and Q4 of 2014, and data transfer volume for Amazon S3 usage grew 102% in the same period.
Amazon AWS is, not surprisingly, extremely popular with web and mobile companies, and the company's startup customers range from mature companies like Yelp, Pinterest and Etsy to startups like Meerkat, Diffbot and Freshdesk. Pointing to AWS customers like Airbnb, Dropbox and Instacart, Jassy noted that being able to focus on building great customer experiences and iterate on them rapidly has enabled upstarts to disrupt industries that might have seemed impervious to disruption just a few short years ago.
But Amazon AWS customer ranks are also swelling with a wide range of enterprise businesses and public sector organizations. From oil company Hess to the United States Centers for Disease Control, Amazon's growing suite of infrastructure building blocks has components that just about every business needs. For instance, Jassy described how a major pharmaceutical company turned to the Amazon cloud for computational power and was able to cut the time necessary to process workloads by orders of magnitude. One workload that previously took days, for instance, could be completed on Amazon AWS in just over an hour.
Helping propel the use of Amazon AWS in larger organizations are consulting firms like Accenture, Capgemini and Infosys, which have incorporated AWS into their practices, and ISVs like Adobe, Citrix and apigee, which have partnered with Amazon to tap into the Amazon AWS ecosystem.
The cloud just makes sense
According to Jassy, there are a number of reasons companies are increasingly relying on the cloud, and in many cases, deciding to build all their applications in the Amazon AWS cloud. First, Amazon AWS eliminates the need for organizations to deal with legacy systems. They can start fresh with modern tools and platforms. Second, Amazon AWS doesn't come with dependencies. Customers can pick and choose what they need, and they can architect their applications as they see fit. Third, because Amazon offers AWS services on a pay-as-you-go basis, companies don't need to incur significant costs to get started. And lastly, they can get started very quickly.
These value propositions appeal to customers of all sizes, and based on the growth of Amazon AWS and its ecosystem, it's clear that the cloud is not just the "new normal," it will become a new requirement for organizations that want to compete and offer the best experiences.