AMAZON WEB SERVICE - Foster School of Business

AMAZON WEB SERVICE

Pinpointing global growth

MIDAS ADVISORY BhanS,itPuaartiito,nTOavttehrovnie,wWassaporn Spain

Italy

South Africa

Financials

Cloud Service

Cloud service is on a path towards prospective growth

MARKET VALUE OF CLOUD SERVICES

In Billion USD

GROWING IMPORTANCE WITHIN IT

% of Cloud to IT revenue

16%

17%

28%

209

2016

383

2020

Source: Gartner, Statista, Team Analysis

Situation Overview

Spain

2016

2021F

Italy

South Africa

Financials

Situational Analysis

As a pioneer and an industry leader, AWS is facing intensified pressure

SLOWED REVENUE GROWTH

% AWS YOY Growth

RISING COMPETITION

Market share % (2017)

17.46

16

18

12.22

16

20

4.60

7.88

68

62

2014

2015

Source: Case Material, CNBC

Situation Overview

2016

2017

Spain

Italy

Q1 AWS

Azure

South Africa

Q2 Others

Financials

KEY QUESTION

How can Amazon sustain it's leadership position and extrapolate it's growth

Situation Overview

Spain

Italy

South Africa

Financials

Current Presence

Many opportunities lie ahead in untapped markets

= successful market penetration

Goal: To successfully pinpoint & expand into three new Regions

Situation Overview

Spain

Italy

South Africa

Financials

Expansion Matrix

Countries are mapped against key criteria

COUNTRIES

FINANCIAL IMPACT

COMPETITION INTENSITY

CLOUD READINESS

Opportunities

ICT EXPENDITURE

INDUSTRY GROWTH

COST

EXISTING 1st TIER

COMPETITORS

CAPABILITY

Infrastructure readiness

Short-listed Weight

In Trillion USD

10.5%

Percentage 9%

Ranking 10.5%

Number of data center

15%

Percentage of market share

15%

Ranking 40%

Italy Spain Poland Mexico Malaysia South Africa Turkey Argentina Russia

0.09 0.06 0.03 0.05 0.03 0.03 0.03 0.03 0.05

Source: WorldBank

Situation Overview

5.80% 3.30% 6.70%

4% 12% 7.00% 7.40% 20% 2.50%

Spain

2 7 7 5 6.5 6.5 6 5.5 3

Italy

0

13.20%

9

0

7.90%

10

0

0%

11

0

5.50%

13

0

0%

14

2

6%

15

0

0%

16

0

0%

17

0

0%

21

South Africa

Financials

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