How big is Amazon Web Services (AWS) cloud hosting business? I have been doing a little research about the cloud services giant and here is some of the numbers that I got.

UBS Investment Research analysts Brian Pitz and Brian Fitzgerald released a report which puts revenue numbers of the giant cloud hosting company Amazon’s web services. The duo estimate that in 2010, AWS will generated about $500 million in revenues and will grow this to $750 million by 2011. By 2014, it would bring in close to $2.54 billion in revenues.

UBS analysts believe believe that the total market for AWS type services will be between $5-to-$6 billion in 2010 and will eventually grow to $15-to-$20 billion in 2014. How do they arrive at these numbers?

• IDC says the total global cloud market in 2010 will be $22 billion and $55 billion in 2014.
• IDC says of the total servers and storage account for $5 billion-to-$6 billion in 2010 and $15-to-$20 billion in 2015.
• Of the twelve AWS product lines, only two (EC2 and S3) compete in this subcategory. AWS essentially ‘rents out’ IT infrastructure to companies that seek to outsource IT needs such as Application Hosting, Web Hosting, High Performance Computing, Storage, E-Commerce, and more. Amazon was one of the first entrants (3Q06), and is a top player in the rapidly growing market. (UBS Research Report)

Can anyone else say that they are a giant in the cloud hosting space.  I sure wish that I was one of the first people to start cloud computing.  I’m still stuck with my 5 dedicated servers all across the US and UK! So question to our readers, do you really think that $2.5 billion dollars is possible in the next 3 years?  Do you think that AWS cloud hosting services can produce that much revenue in the next 3 years?