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Amazon unveils stats for AWS

Amazon has finally revealed solid numbers for Amazon Web Services, its cloud computing suite that has been bundled with ‘Other’ revenue for the past decade.

The numbers are impressive, with £1.06 billion in revenue, £175 million in profit. It is one of the only profitable divisions for Amazon, given the large failures of the Fire Phone, Kindle Fire and the large amount spent on R&D.

Amazon’s CEO Jeff Bezos had a lot of praise for the company’s fortune in turning a non-standard business and making it competitive and profitable, against a plethora of other cloud computing services from Microsoft, IBM, Salesforce and more.

“Amazon Web Services is a $5 billion (£3.3 billion) business and still growing fast - in fact, it’s accelerating. Born a decade ago, AWS is a good example of how we approach ideas and risk-taking at Amazon. We strive to focus relentlessly on the customer, innovate rapidly, and drive operational excellence. We manage by two seemingly contradictory traits: impatience to deliver faster and a willingness to think long term,” said Bezos during the conference call.

Even with the impressive numbers on Amazon Web Services, the company still failed to turn a profit this quarter, with a net loss of £37 million - that is down from £400 million net loss last quarter, citing inventory and advertising for the Fire Phone forcing the hefty loss.

Amazon’s e-commerce platform continues to grow in sales, with £15 billion in sales this quarter compared to £13 billion last year.

Even though Bezos is clearly not concerned with short term profits, there is a big question as to whether Amazon will ever be profitable. Several investors have lauded on the fact the e-commerce giant seems more confident spending all of its profit on R&D and new non-standard services, instead of saving like Google, Facebook or Apple.