Amazon Web Services is the fastest growing enterprise in history, according to analysts at Deutsche Bank who have measured the impact of various companies in their respective fields.
The company has seen its revenues accelerate exponentially over the last 12 months, with the cloud business' own figures showing a 78 per cent growth year-on-year in the last quarter. This indicates the company is on track to expand at an even faster rate in the coming year, explained Deutsche Bank.
“We conclude that a 2017 revenue multiple of 10x seems fair for AWS, which given our 2017 AWS revenue estimate of $16 billion implies a valuation of $160 billion," Deutsche Bank's Karl Keirstead said.
“Measured by revenues, AWS is approximately 6x larger than its biggest rival Microsoft Azure and is arguably the greatest disruptive force in the entire enterprise technology market today."
These estimates would put AWS way ahead of its competitors and almost on a level playing field with much longer-standing companies such as IBM, which has been valued at $160 billion, and Oracle, with its estimated worth of $170 billion.
The level of growth is also higher than others in the tech space, such as Salesforce, Workday, and Google, which all had a median 2016 revenue multiple of 9x.
Keirstead explained that it's not just the value of AWS that makes it such a driving force, buts its management set-up has also proven to be a recipe for success, specifically mentioning Andrew Jassy, the company's boss.
“While Marc Benioff of Salesforce is an icon in the software industry,” the note said, “Andrew Jassy of AWS keeps a relatively low profile and in our view may be the world’s most under-appreciated technology company head.”
