Skip to main content

AWS successes provide major boost to Amazon profits

(Image credit: Image Credit: Gil C / Shutterstock)

Amazon Web Services (AWS) has proved to be the main success story in its parent company's latest earnings report.

Today saw Amazon reveal its second quarter results, with AWS helping boost its total profits as the business continues to drive the cloud computing industry forward. 

During Q2 2017, AWS saw an incredible 42 per cent increase in revenue compared to this same time last year. However, its profits were flat despite bringing in $4.1 billion in revenue.  This is a significant jump from the second quarter of 2016 where Amazon's cloud division brought in $2.9 billion. 

AWS' operating income was $916 million for the quarter which was higher than in Q2 2016 at $718 million.  While investors were surprised by the division's drop in profits, observers were not as they had expected it. 

Amazon has invested heavily in AWS recently, hiring more people and purchasing better equipment during the quarter, meaning operating expenses also increased.  The company's own operating expenses came in at $3.2 billion which was up by 46 per cent compared to this time last year. 

Brian Olsavsky, Amazon's chief financial officer, noted that the company had invested a great deal into AWS during Q2 2017 by way of capital leases, saying: “We're seeing accelerating usage growth in many of our large services with customers.”

Amazon's second biggest competitor to AWS, Microsoft has not yet released the revenue numbers for its own cloud computing platform Azure but according to the company its revenue also grew by 97 per cent during the last quarter. 

AWS' financials are further proof that the cloud market is continuing to grow at a steady pace. 

Image Credit: Gil C / Shutterstock

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.