This master’s thesis evaluates automatic data annotation and machine learning predictions of iron ore pellets using tools provided by Amazon Web Services (AWS) in the cloud. The main tool in focus is Amazon SageMaker which is capable of automatic data annotation as well as building, training and deploying machine learning models quickly. Three different models was trained using SageMakers built in semantic segmentation algorithm, PSP, FCN and DeepLabV3. The dataset used for training and evaluation contains 180 images of iron ore pellets collected from LKAB’s experimental blast furnace in Luleå, Sweden. The Amazon Web Services solution for automatic annotation was shown to be of no use when annotating microscopic images of iron ore pellets. Ilastik which is an interactive learning and segmentation toolkit showed far superiority for the task at hand. Out of the three trained networks Fully-Convolutional Network (FCN) performed best looking at inference and training times, it was the quickest network to train and performed within 1% worse than the fastest in regard to inference time. The Fully-Convolutional Network had an average accuracy of 85.8% on the dataset, where both PSP & DeepLabV3 was showing similar performance. From the results in this thesis it was concluded that there are benefits of running deep neural networks as a cloud service for analysis and management ofiron ore pellets.