Menu
Massive growth shows why Amazon is the public Cloud leader

Massive growth shows why Amazon is the public Cloud leader

Sixty-four percent revenue growth shows how much companies rely on AWS

Amazon has shown off its dominance in the public Cloud market as the capstone to a better than expected quarterly earnings report.

Revenue from Amazon Web Services during the first quarter of 2016 was up 64 percent year-over-year, showing the big money that's still out there as companies invest more and more in the public Cloud.

Amazon's cloud platform generated revenue of $2.56 billion, putting it on pace to make $10 billion this year, in line with a letter from CEO Jeff Bezos sent to shareholders earlier this month. That's big money to go with Amazon's massive customer base, which includes names like Netflix, Time Inc., and Intuit.

Right now, Amazon is sitting pretty in the public Cloud business - it's the leading player by a large margin, and these revenue numbers show how well it's doing.

One risk that Amazon Director of Investor Relations, Phil Hardin, pointed out on a call with financial analysts is that the profit margins for AWS will likely be "bumpy" going forward as Amazon continues to invest in new infrastructure and other technologies, in addition to lowering costs for its services.

The company is also facing tough competition from both its neighbor Microsoft and a variety of other companies, including Google and IBM. Cloud adoption among companies is still in its early days, so Amazon doesn't have a lock on the market just yet. What it does have is a commanding leadership position that's making a lot of money. AWS produced operating income of $US604 million, up from $US195 million a year earlier.

Looking at its business overall, Amazon smashed expectations for how well its first quarter would go, with total revenue of $US29.13 billion, up 28 per cent, and earnings of $US1.07 per share. The earnings number is especially notable, considering that Amazon is known as a company that frequently doesn't turn a profit. (This previous quarter marks the fourth in a row that Amazon posted a profit, however.)

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags amazon.com

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments