As Amazon continues to grow and more large businesses move to the cloud, the company continues to add new features to AWS while also cutting prices. Right now, AWS is known as the world’s largest provider of public cloud infrastructure ahead of Microsoft, Google, IBM, etc.
In the third quarter of this year, Amazon’s cloud business grew 46 percent and generated $6.68 billion in revenue according to analysts polled by FactSet. AWS accounted for 12 percent of Amazon’s total revenue.
Additionally, AWS reported operating income of $2.1 billion for the quarter, which is above the $1.82 billion FactSet consensus estimate. AWS delivered 56 percent of Amazon’s total operating income. AWS operating margins are at 31 percent, the highest it has been in more than four years!
Lead Stifel analyst Scott Devitt estimated AWS would generate $50 billion in revenue by 2020.
For more details and videos on how AWS made Amazon profitable, check out the original CNBC article here
For more information, check out these posts:
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- In The News: Almost A Third Of Key Enterprise IT Spending To Be Cloud Based By 2022
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- In The News: IDG 2018 Cloud Insights
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- Mesosphere 2018 Cloud Native Ecosystem Report