How AWS Is Funding Amazon's E-Commerce Expansion In International Markets

Amazon Web Services Amazon's public cloud division, is the strongest and most profitable business division for the company, with sales growth of 55% over the past year to $ 3.2 billion and operating profit growth From more than 100% to $ 861 million. The operating profit of Amazon's online commerce activities in North America increased only 37% and the loss of performance of its international market increased 160% to $ 541 million for the same period.




Therefore, AWS has contributed 150% of the operating profit of the Amazon in the third quarter, offsetting the growing losses in international e-commerce due to investments in India.




The dominance of Amazon in the cloud market

AWS has been ranked first in Gartner's Magic Quadrant for cloud infrastructure services in the second quarter of 2016, followed by Microsoft, IBM and Google. Amazon has been a leader in the cloud infrastructure services market since 2006, thanks to its wide range of Infrastructure-as-a-Service and Platform-as-a-Service (IaaS) offerings, And market continues to grow faster, steady improvement of it.



In the future, Amazon is expected to maintain its participation in this growing market by diversifying its product portfolio and expanding geographically. In order to reach out to all types of customers - start-ups, SMBs and large companies - and enhance their agility and customization capabilities, Amazon acquired Cloud9 earlier this year. It also opened two data centers in Mumbai in June to accelerate the expansion of its cloud services in the Asia-Pacific region.