Amazon Web Services Chief Executive Andy Jasie [CNNC]
Amazon reported 37% growth in cloud business on Thursday, which is lower than analysts' forecasts, and suggests that Microsoft is gaining momentum. The results contributed to the lack of integrity for Amazon.
Amazon Web Services, which provides calculations and storage for corporations, schools and government agencies, said second-quarter earnings rose to $ 8.38 billion, compared to an average forecast analyst of $ 8.48 billion. according to FactSet. Growth has fallen from 41
AWS continues to play a significant role in making profits for Amazon, the world's second-most valuable public company. In the cloud market, Amazon maintains commander before all other competitors, including Google, IBM, Microsoft and Oracle.
But Microsoft Azure's business is growing faster and gaining momentum as the second player. Last week, Microsoft announced a 64% increase in Azure sales.
AWS is generating $ 2.12 billion operating income in the quarter, compared with $ 1.64 billion a year earlier and lower than FactSet's consensus estimate of $ 2.45 billion
The second-quarter communications service provider Slack said he has committed to spend at least $ 250 million on AWS for five years. This is only the last figure that has become public since AWS customers are asking for primary public offerings and revealing significant costs in the cloud.
Leif said he has committed to spend at least $ 300 million on AWS for three years – from the beginning of 2019 to 2021. Pinterest said it would spend at least $ 750 million on AWS over a six-year period , ending in July 2023.
"AWS takes advantage of the first player in the cloud market and maintains sustainable growth over the past two years," KeyBanc Capital Markets analysts, led by Edward Iruma, say. "There are several business models on this scale that continue to grow 38% on an annual basis."
AWS revenue reached 13% of Amazon's total revenue. Of the total $ 3.1 billion of Amazon's revenue, 52% are from AWS. WATCH: How Amazon Web Services transfers huge amounts of cloud data