Amazon Cloud posted yet another impressive number for the last quarter, signaling the continued strength of this line of Amazon’s business. AWS reported a sale of $3.2 billion, and this is almost 55 percent higher than the $2.08 billion it posted during the same period, a year ago. The operating income of the company was $1.02 billion, up nearly 96 percent from the $521 million it posted a year ago.
These numbers clearly show that AWS is growing at an incredible pace, despite facing intense competition from deep-pocketed companies such as Microsoft and Google. Much of this success can be attributed to a simple and clear strategy of helping business leverage the power of AWS to improve their performance. When AWS was launched ten years ago, it allowed firms to rent computing capacity, which means, they paid only for what they used. Such a model made cloud more accessible for all companies, including startups with limited budgets.
Another important strategy that AWS followed was to make strategic partnerships at the right times. Recently, AWS announced a partnership with VMware, under which VMware’s cloud software will run on AWS. Other similar partnerships have helped AWS to gain a strong foothold in the cloud market, and this in turn, has helped it to stay ahead of its competitors.
Even during the earnings call, AWS reiterated that the company will focus on helping more businesses to move to AWS, from both on-premise and hybrid environment. To this end, it has launched a new tool called Server Migration Service, that’ll ease the process of moving legacy applications to the cloud. This tool will help IT teams to create incremental replication of virtual machines from their on-premise infrastructure to AWS, with an aim to help them reap the many benefits that come with public cloud. This is an important move because moving legacy applications to the cloud is a painful process, to say the least, and this is mainly why many companies are opting for a hybrid environment. As a result, they miss out on the flexibility and cost-saving that a public cloud offers. With this tool, companies now have the option to move their operations entirely to the cloud, so they can make the most of the benefits offered by it.
Besides this tool, Amazon Cloud has also announced that it’ll add data center facilities across many new geographical regions. This move is in tune with the trend of keeping data as close to the customers as possible, so they experience low latency and faster access speeds. Some countries like Germany even mandate that data should be kept only within its sovereign borders, so the new data center facilities are being setup to comply with these regulations as well. These strategies are likely to bring more benefits to AWS and its customers in the future.
Despite all these positive data, shares of Amazon fell in after hours trading, with an almost six percent drop towards the end. This fall is because the parent company’s profits was lesser than what was expected. In this sense, Amazon Cloud can be the silver lining for this company.
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