Menu
AWS quarterly revenue continues to rise, but growth slows

AWS quarterly revenue continues to rise, but growth slows

The cloud platform provider's fourth quarter 2016 revenue passed $3.5B

The rocketship of cloud growth continued at the end of 2016 for Amazon Web Services.

The public cloud provider announced Thursday that it brought in a little more than US$3.5 billion during the fourth quarter of last year, up 47 percent from the same period in 2015.

Quarterly operating income rose 60 percent to $926 million, compared to $580 million during the prior year quarter.

That's nothing to sneeze at, but AWS's revenue growth was the lowest it has been in the past two years.

There are a number of potential explanations for that, including seasonal changes in cloud migrations, and increasing difficulties on Amazon didn't provide an explanation for that, but it likely has to do with AWS's growing revenue base overall.

Continuing growth is a positive sign for AWS, which is locked in tight competition with companies including Microsoft and Google to try and power the next generation of business applications.

Amazon said AWS launched 1,019 new features in 2016 as part of that push.

Microsoft’s Intelligent Cloud revenue segment brought in $6.9 billion in revenue during the same period. However, that also includes revenue from sources beyond its Azure cloud platform, including licenses for software including Windows Server and SQL Server.

A series of price cuts for AWS services kicked in during the quarter. Amazon CFO Brian Olsavsky said on a conference call with financial analysts that such cuts are "going to be a constant in this business."

It's unclear exactly what impact they may have had on the cloud provider's overall financial results.

Overall, Amazon's fourth quarter revenue was $43.7 billion, up 22 percent from $35.7 billion at the end of 2015.

The company's fourth quarter profit was $749 million, compared to $482 million during the prior year quarter.


Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags amazon.com

Featured

Slideshows

Kiwi channel comes together for another round of After Hours

Kiwi channel comes together for another round of After Hours

The channel came together for another round of After Hours, with a bumper crowd of distributors, vendors and partners descending on The Jefferson in Auckland. Photos by Maria Stefina.​

Kiwi channel comes together for another round of After Hours
Consegna comes to town with AWS cloud offerings launch in Auckland

Consegna comes to town with AWS cloud offerings launch in Auckland

Emerging start-up Consegna has officially launched its cloud offerings in the New Zealand market, through a kick-off event held at Seafarers Building in Auckland.​ Founded in June 2016, the Auckland-based business is backed by AWS and supported by a global team of cloud specialists, leveraging global managed services partnerships with Rackspace locally.

Consegna comes to town with AWS cloud offerings launch in Auckland
Veritas honours top performing trans-Tasman partners

Veritas honours top performing trans-Tasman partners

Veritas honoured its top performing partners across the channel in Australia and New Zealand, recognising innovation and excellence on both sides of the Tasman. Revealed under the Vivid lights in Sydney, Intalock claimed the coveted Partner of the Year 2017 (Pacific) award, with Data#3 acknowledged for 12 months of strong growth across the market. Meanwhile, Datacom took home the New Zealand honours, with Global Storage and Insentra winning service provider and consulting awards respectively. Dicker Data was recognised as the standout distributor of the year, while Hitachi Data Systems claimed the alliance partner award. Photos by Bob Seary.

Veritas honours top performing trans-Tasman partners
Show Comments