Amazon Web Services CEO Adam Selipsky speaks on the CERAWeek by S&P Global convention in Houston on March 7, 2023.
F. Carter Smith | Bloomberg | Getty Images
Amazon mentioned Thursday that its cloud unit grew income by about 16% within the first quarter, a barely extra speedy tempo than analysts had projected.
Revenue from Amazon Web Services totaled $21.35 billion, representing nearly 17% of Amazon’s total income, in accordance with the corporate’s earnings assertion. Analysts surveyed by StreetAccount had anticipated $21.22 billion in AWS income. In the fourth quarter, AWS income grew 20%.
“AWS sales and support teams continue to spend much of their time helping customers optimize AWS spend so they can weather this uncertain economy,” Brian Olsavsky, Amazon’s finance chief, mentioned on a convention name with analysts.
Amazon faces competitors from Alibaba, Alphabet, Microsoft, and Oracle however enjoys a cushty lead within the cloud infrastructure market globally. Microsoft executives mentioned earlier this week that through the quarter its cloud prospects took steps to enhance the effectivity of their cloud spending.
On Tuesday, Alphabet mentioned its Google cloud phase made cash for the primary time on report, turning a $191 working revenue.
Amazon mentioned AWS working earnings got here out to $5.12 billion, a bit beneath the StreetAccount consensus of $5.18 billion. AWS has generated revenue for its father or mother firm since 2014. Amazon as an entire had $4.77 billion in working revenue.
The working margin for AWS, at 24%, was the narrowest it has been since 2017. On Wednesday, Adam Selipsky, Amazon’s AWS CEO, issued a memo saying the corporate had began informing staff who might be laid off from the division.
“Both the size of our business and the size of our team have grown significantly over recent years, driven by customer demand for the cloud and for the unique value AWS provides,” Selipsky wrote.
“This growth has come quickly as we’ve moved as fast as we could to build what customers have needed. Given this rapid growth, as well as the overall business and macroeconomic climate, it is critical that we focus on identifying and putting our resources behind our top priorities — those things that matter most to customers and that will move the needle for our business.”
During the quarter AWS mentioned it might open a area of information facilities in Malaysia.
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