Amazon Web Services (AWS), the company’s cloud business, has posted its financial results for the fourth quarter of 2019. According to the figures, it represents two thirds of the company’s entire operating profit.
The cloud business posted net sales of almost $10 billion, with operating profit sitting at $2.6 billion. That’s a top-line increase in sales of 34 percent, something that caught even the most optimistic analysts by surprise.
For analyst Patrick Moorhead from Moor Insights & Strategy, AWS has had an “exceptional quarter". Had the entire year been this successful, he said, AWS would have earned $40 billion.
Despite commendable results, Amazon is still looking to improve. On a recent conference call with the media, Amazon’s Chief Financial Officer (CFO) Brian Olsavsky said the company’s balance of multiyear deals would rise to $30 billion, up by more than 50 percent.
“We continue to see a lot of momentum with customers across a wide range of industries, from startups to enterprise customers and public sector,” he said.
Migrating to the cloud, one of the key aspects of digital transformation, is at the top of the priorities list for many companies around the world and Amazon, being among the early service providers, is reaping the benefits.
The results would have been even more impressive had the company been awarded the lucrative JEDI deal, which ended up with Microsoft.