Barb Darrow has a post on Morgan Stanley's report.
Barron's also has a post on the report.
Amazon’s Web Services Threatens Almost All IT, Says Morgan Stanley
By Tiernan Ray
Morgan Stanley’s Scott Devitt, in a longish (32 pages) report in conjunction with colleaguesKeith Weiss, Ehud Gelblum, Simon Flannery, Katy Huberty, Joseph Moore, and Adam Wood, this morning writes that Amazon.com (AMZN) is “making waves” in conventional IT by “applying retail economics” that is making it an “emerging IT mega-vendor.”
Devitt, who has an Overweight rating on Amazon shares, writes that Amazon’s “Amazon Web Services,” which runs compute tasks on its servers for a fee, should be able to reach $24 billion in revenue by 2022, through a combination of services that produce greater scale in computing tasks, and by offering “a continual downward pressure in pricing.”
The authors size the total addressable market for Amazon Web Services at $152 billion, and offer a graphic for that: