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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags amazon.com

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments