As they lead the market, Amazon reported a $14.81 billion revenue from its cloud unit, AWS Cloud. That’s right, on 29th July, the company announced that the revenue from its cloud-computing business grew 37% YoY in the second quarter.
These latest results from Amazon solidify AWS’ grasp over the market for computing infrastructure tools that businesses, governments, and schools use to run their applications and websites. Amazon Web Services accelerated revenue growth yet again, even as it continues to lead the market.
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In the Q2 earnings report by Amazon, it was found that AWS’ revenue totalled to $14.81 billion. The company’s acceleration in growth is phenomenal. According to the estimates from Gartner, in 2020 itself, AWS held 41% of the market which was more than double of Microsoft (the second-largest contender). Compared to Amazon’s results from the second quarter of 2020, it can be noted that the company’s growth rate varied across industries due to the inception of COVID-19.
Did you know Amazon plans to build data centers in Israel and the United Arab Emirates?
Making the announcement official, the company also announced AWS’ relationship with Dish Network to build out cloud-based 5G infrastructure and said it would open data centers in Israel and in the United Arab Emirates.
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Quoting Brian Olsavsky, Amazon’s finance chief, on a conference call with analysts, “We do note that last year, there was a lot of effort by companies to limit their spend, and operate more efficiently as we’re all plunged into a kind of an unknown demand curve, and some industries were hurt worse than others.” That said, we also discovered that AWS was left with $4.19 billion in operating income, putting the operating margin at 28.3%, narrowing from 30.8% in the first quarter.
Did you know that out of Amazon’s $113.08 billion in total revenue, 13% is attributed to its cloud unit, and 54% of the company’s operating income came from AWS?
Amazon remains a strong force in consumer goods & services and business services from cloud computing to its massive marketplace for other sellers. But as Andy Jassy’s elevation partly indicates, AWS still remains a big focus for the company despite its still relatively small size compared to the rest of Amazon.
The Competition
Although AWS remains far in the lead in cloud infrastructure services, Microsoft and Google have been picking up their pace and have likely been growing faster. Although direct comparisons are difficult, but we can tell you that both Microsoft and Google issued their earnings results this week and show more rapid growth in their cloud revenues.
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