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Amazon Web Services is poised top $1 billion in cloud services revenue in 2012, according to a new report from research firm IDC that underscores the rise of cloud computing across the tech industry, and the increasing significance of AWS to the Seattle-based online retailer.

Google’s cloud-based enterprise technology business should reach that milestone 18 months later, the firm predicts.

As noted by Business Insider, neither company currently breaks out revenue for the cloud portion of its business. Amazon’s net sales were $32 billion last year, and Google’s revenues were $29 billion, the cloud numbers are still a relatively small percentage for each.

The IDC report also predicts increased acquisitions and M&A activity in 2012 in cloud computing:

Competition will also characterize the world of cloud services in 2012 as the strategic focus shifts from building infrastructure to the creation of application platforms and ecosystems. Here the battle for enterprise platform dominance is just getting underway with established players like IBM, Microsoft, and Oracle facing serious challenges from Amazon, Google,, and VMware. As evidence of this challenge, IDC expects Amazon Web Services to exceed $1 billion in cloud services business in 2012 with Google’s Enterprise business to follow within 18 months. IDC also expects a merger and acquisition (M&A) feeding frenzy as these companies seek to gain a competitive edge. Look for Microsoft to buy a content/media cloud, like Netflix, to provide a marketplace for its apps and content. Other prime targets for acquisition include Cloud Application/SaaS companies, like Workday, NetSuite, and Taleo.


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