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 newsletter!

Error: Please check your email address.

Tags amazon.com

Featured

Slideshows

Sizing up the NZ security spectrum - Where's the channel sweet spot?

Sizing up the NZ security spectrum - Where's the channel sweet spot?

From new extortion schemes, outside threats and rising cyber attacks, the art of securing the enterprise has seldom been so complex or challenging. With distance no longer a viable defence, Kiwi businesses are fighting to stay ahead of the security curve. In total, 28 per cent of local businesses faced a cyber attack last year, with the number in New Zealand set to rise in 2017. Yet amidst the sensationalism, media headlines and ongoing high profile breaches, confusion floods the channel, as partners seek strategic methods to combat rising sophistication from attackers. In sizing up the security spectrum, this Reseller News roundtable - in association with F5 Networks, Kaspersky Lab, Tech Data, Sophos and SonicWall - assessed where the channel sweet spot is within the New Zealand channel. Photos by Maria Stefina.

Sizing up the NZ security spectrum - Where's the channel sweet spot?
Show Comments