AWS Passes $10 Billion Mark

Amazon Web Services (AWS), which has reached a new revenue record, caps off a quarter where the global COVID-19 pandemic caused a surge in remote work, and consequently, cloud services demand.
The cloud giant reported Thursday earnings of $10.2 Billion for the period ending March 31, a 33% increase over the previous year, when it had revenues $7.7 Billion. Wall Street estimates for AWS were narrowly missing AWS’s revenue estimate of $10.3 billion. This represents a 34% decrease.
Quarter-to-quarter, AWS is up 2.7% compared to Q4’s $9.95 Billion.
Operating income was just below $3.1 billion for the quarter. This beat estimates of $2.95 trillion. Operating income grew by 38% year-over-year.
Despite slowing growth (this quarter’s year-over–year increase is its lowest ever recorded), AWS continues to be its parent company’s fastest growing business unit. It is closely followed by the North America retail segment. AWS is responsible for 14% of Amazon.com’s overall sales, an increase of one percentage point over the same period last years.
Jeff Bezos, Amazon.com CEO, spoke out about AWS efforts to help businesses, researchers, and policy makers during the pandemic. Amazon.com is offering a 12-month free AWS tier to small businesses. AWS recently published a public dataset lake of COVID-19 datasets. It also joined a White House-backed group high-performance computing (HPC), and launched a $20m fund for COVID-19 research.
Microsoft, whose Azure cloud platform rivals AWS, released its latest quarterly earnings report on Wednesday. Microsoft doesn’t separate Azure revenues from its wider Commercial Cloud business. However, it did report 59% revenue increase for Azure in the most recent period.

Author: Victoria