Dive Brief:
-
Amazon Web Services generated 9.9% of Amazon’s total revenue in the last quarter, generating $3.23 billion in net sales, up 55% year over year, according to earnings reports released Thursday.
-
In 2014, AWS comprised jut 4.8% of its parent company’s revenue, according to ZD Net.
-
AWS had quarterly operating income of $861 million, up from $521 in the third-quarter of 2015.
Dive Insight:
AWS’ growth demonstrates accelerating enterprise demand for cloud services. As cloud becomes more ubiquitous, it’s not surprising that AWS is making up more and more of Amazon’s overall business. But competitors are eager to take a bigger pieces of the pie, too. Google and Microsoft are both pushing into new areas of cloud and bolstering their cloud-based offerings. Amazon currently controls 29% of the cloud infrastructure provider market.
Amazon CFO Brian Olsavsky, speaking on a conference call Thursday, said AWS does not plan to sit on its laurels, but plans to constantly innovate to stay ahead. Olsavsky said AWS has already introduced over 700 new features so far this year.
Earlier this month, AWS announced they will partner with VMware to build a new integrated hybrid cloud offering, one of the few areas where AWS has struggled.
"We'll continue to react to customer needs, and that will include opening up new regions," Olsavsky said.
AWS now operates 38 Availability Zones globally, and plans to open another nine soon.
For the year, AWS is on track to hit over $10 billion in revenue, about four times as much as its closest competitor, Microsoft Azure.
