Amazon Web Services (AWS) earned $2.56 billion in revenue in Q1 2016, according to Amazon's quarterly earnings statement.
The company's public cloud division has continued to grow, but its operating expenses have done so as well. AWS spent $1.85 billion in operating expenses while its business unit earned $604 million in operating income. The is down from $687 million in operating income from the Q4 2015.
Amazon's earnings report shows that AWS produced a year-to-year growth rate of 63.8 per cent. However this is down by 5 per cent from the 69 per cent revenue growth the division experienced during the fourth quarter of 2015.
Currently AWS is leading the market in public cloud infrastructure and is faring better than its major competitors which include Microsoft Azure and Google Cloud Platform. The company's web services division pre-dates both platforms and has been around for 10 years.
AWS provides companies with compute, storage, networking, and database resources. Developers are able to use these resources to build, test and run applications using a hardware infrastructure that they are not responsible for maintaining.
Amazon has earned a total of $8.88 billion in revenue from AWS over the past four quarters and it is unlikely that its earnings will slow down anytime soon. Jeff Bezos, the CEO of Amazon, recently declared that AWS will reach $10 billion in revenue in 2016.