Tuesday, May 2, 2017

Amazon Dominates the Cloud as AWS Revenue Soars in Q1

Amazon Web Services (AWS) continues to dominate the cloud services industry and to be a great money-making machine for the company in the early months of 2017. Amazon said its net profit rose to $ 724 million in the first quarter , Which represents for AWS products most of its profits to an operating profit of 809 million.

In comparison, the operating profit was AWS 604 million a year ago.

Major cloud services increased their net sales by 43% year over year to $ 3.7 billion for the quarter ended March 31. That compares with 2.6 billion in the first quarter of 2016.

Profits from the Amazon reported after the market close on April 27 have exceeded analysts' expectations and the company's shares are sent around 2% by mid-April 28.

AWS growth in the first quarter of 2017 comes despite several price reductions for its cloud operations in late 2016.

"There are price reductions that are part of the company," said Brian Olsavsky, chief financial officer of the Amazon during the company's earnings call, citing seven price cuts scheduled for December 1, 2016. "Around one Third of the impact of the latter was seen in the fourth quarter. "

Olsavsky did not report the increasing usage number, but noted that AWS reached an annual rate of 14 billion.

"The pace of innovation continues to accelerate," Olsavsky said. "We are very proud of launches in the first quarter: Amazon Connect, which we believe will provide a customer service capability for customers and Amazon Timbre, which we believe will resonate with customers. Our new services. Customers have migrated more than 23,000 databases using AWS database migration services since they launched last year. "

In addition to the growth of AWS products, the cloud provider has also signed several corporate clients in the first quarter. This included live entertainment and Live Nation company selling "all-inclusive" tickets on AWS and Liberty Mutual, which uses AWS to accelerate the implementation of its trading platform. Snap Inc. has also expanded its use of AWS and announced a new agreement to use $ 1 billion in AWS services over the next five years.

While AWS remains the market leader, growth slows. The business grew 64 percent in the first quarter of 2016.

Meanwhile, its competitors, such as Microsoft Azure and Google Cloud, continue to develop their business, as workloads continue to migrate to the cloud.

Microsoft Azure said its sales rose 93 percent in the first quarter. The parent company of the Google alphabet does not have separate data from its cloud business during appeal yesterday's earnings. However, they said Google Cloud Platform is one of the most dynamic companies in the alphabet.

And earlier this week, IBM said it has opened four new data centers in the United States and announced plans to open four more worldwide before the end of the second quarter.

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