Estimation question

Estimate AWS's total annual revenue.

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What this question tests

Structured estimation using a top-down market-sizing approach with defensible assumptions.

How to approach it

  1. Clarify approach: use a top-down method, estimating total global cloud infrastructure spend and AWS's market share, rather than bottom-up.
  2. Estimate total global cloud infrastructure market size, using an assumed figure grounded in general market awareness.
  3. Estimate AWS's market share of that total, assumed to be the largest single player at roughly 30 to 35%.
  4. Multiply market size by share to get an estimated AWS revenue figure.
  5. Sanity check the result against general awareness of AWS being a large, profitable division within a larger company.
  6. State the final estimate as a range, with the market size and share assumptions called out explicitly.

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