Did AMZN’s AWS sell $500M of Cloud Video Processing & Management services in the TTM period? Holy cow!

I almost missed the news of Amazon’s first-ever financial report with AWS revenue broken out. (Life w/ kids is busy!) I’ve been eager to see this figure for years. At Ericsson my small crew and I spent 2 full years preaching the cloud video story and in my business case for cloud MAM I took a stab at estimating both this AWS top-line number and – further still – the percentage of that number that might represent cloud video processing and media mgmt infrastructure.

Between then and now I was lucky enough to access some information about the AWS business that provides one fast-and-loose clue. I have good reason to believe that 10% of the attendees of the last AWS re-invent conference were associated with the TV & media customer vertical. (It’s a personal blog so I won’t source that. You’ll have to trust me.)

Since video processing and storage are compute intensive relative to other AWS sub-segments, let’s just take a big leap of faith and ask this: What if the video infrastructure market segment represents 10% of the overall AWS business? That seems like a reasonable thing to say. Not scientific by any stretch – but it doesn’t strike me as crazy.

That’d make the Cloud Video Processing & Mgmt sub-segment worth $500M in top-line TTM net sales for Amazon. By comparison, that blows the doors off of many of the comparison’s we might make for that line of business, whether Ericsson’s Content Mgmt software business or Brightcove, Ooyala, and similar competitors. Wow.

This is not a disciplined analysis, just a stab in the dark by an experienced guy.

What do you think? Comment below on the economics of the cloud video processing & management business.

Devoncroft

About RingDigital.tv

Expert in video tech, TV biz, prototyping, product strategy, marketing & sales.

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