AWS is proving to be even more of a success for Amazon, with revenues from its cloud business jumping 49 per cent in the first quarter of this year.
The company has announced total sales of $5.44 billion for the period, beating analysts’ expectations, with Amazon Web Services playing a major part, accounting for 11 per cent of the company’s total revenue, up from 8.5 per cent in Q4 last year.
Looking at operating income for the same period, AWS produced $1.4 billion, or 73 per cent of the entire $1.93 billion operating income for Amazon.
“AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” Bezos reportedly said (opens in new tab).
“As a result, the AWS services are by far the most evolved and most functionality-rich. AWS lets developers do more and be nimbler, and it continues to get even better every day. That’s why you’re seeing this remarkable acceleration in AWS growth, now for two quarters in a row. A huge thank you to all our AWS customers, and you can be sure we’ll keep working hard for you.”
Amazon’s main competitors in the field, namely Microsoft with Azure, Google with its Cloud platform and IBM, as well as Alibaba and Oracle, are still playing catching up.
However, CNBC is saying (opens in new tab) that Microsoft and Google are expanding much faster than Amazon and picking up share, despite AWS keeping growth above 40 per cent. Microsoft's Azure, for example, grew 93 per cent in the same period.
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