{"id":37614,"date":"2019-02-01T12:00:39","date_gmt":"2019-02-01T12:00:39","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=2dab8b64866771e754151f9b771f7e89"},"modified":"2019-02-01T12:00:39","modified_gmt":"2019-02-01T12:00:39","slug":"cloud-computing-dominates-amazon-profits","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/cloud-computing-dominates-amazon-profits\/","title":{"rendered":"Cloud computing dominates Amazon profits"},"content":{"rendered":"


\n Bobby Hellard<\/a><\/span>
\n <\/span><\/p>\n

\n
\n
1 Feb, 2019<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

\n<\/a><\/p>\n

\n

Amazon reported improved earnings on Thursday, raking in over $3 billion from 2018, but a large portion of this has come through its cloud computing arm, AWS.<\/p>\n

The leading cloud provider’s profits grew 45% year on year, continuing an annual trend of growing by at least 40% each year. The cloud division has become crucial for the whole of Amazon for both revenue and profits.<\/p>\n

“Amazon had a blowout quarter, led by its AWS public cloud division. AWS grew 45% year on year for the quarter at $2.3B,” said Patrick Moorhead, an analyst at Moor Insights & Strategies. “The AWS business is very profitable, generating $1.3B in operating income, more than all other businesses combined. I attribute this growth to its increased flexibility through ‘elastic’ capabilities as well as increased variability across EC compute capabilities.<\/p>\n

“I will be interested to see how AWS’s recently announced AI PaaS and SaaS services fare as they appear quite compelling.”<\/p>\n

Indeed, the PaaS offerings proved a big hit during the company’s Re:Invent conference in November. Lots of effort and marketing had gone into customisable services, such as the AWS Marketplace for machine learning and AI. This, combined with a whole host of new offerings and new partnerships, such as Fender guitars, Formula 1 and Zurich Insurance, painted a picture of good health for the cloud division of Amazon.<\/p>\n

The company as a whole reported its third record profit in a row, thanks to a strong year for cloud computing, advertising and a successful festive period. The Seattle-based company’s 2018 profit of $3.03bn, or $6.04 a share, is up from $1.86bn, or $3.75 a share, on the same quarter a year earlier. Meaning revenue grew 20% to $72.38bn. Also providing a cash injection is its voice-controlled virtual assistant Alexa, and the Echo devices.<\/p>\n

“Alexa was very busy during her holiday season,” said CEO and founder Jeff Bezos in a statement. “Echo Dot was the best-selling item across all products on Amazon globally, and customers purchased millions of more devices from the Echo family compared to last year.” <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Bobby Hellard<\/p>\n

1 Feb, 2019 <\/p>\n

Amazon reported improved earnings on Thursday, raking in over $3 billion from 2018, but a large portion of this has come through its cloud computing arm, AWS.
\nThe leading cloud provider’s profi…<\/p>\n","protected":false},"author":403,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-37614","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/37614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/403"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=37614"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/37614\/revisions"}],"predecessor-version":[{"id":37615,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/37614\/revisions\/37615"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=37614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=37614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=37614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}