Tech

Amazon Web Services public cloud becomes terribly profitable

Amazon Web Services (AWS), the provision of cloud services is fast becoming the jewel Amazon, which reports profits for the second consecutive quarter.
AWS is the primary source of profit Amazon in the third quarter 2015, representing 52% of operating profits from Amazon, 36% the previous quarter. The operating profit is 521 million for a turnover of 2.08 billion (+ 78% yoy). The e-commerce activities, causing the creation of Amazon, relate only $ 472 million. On 2015, AWS expects to exceed $ 7 billion in revenue.

Sales of AWS take off during the quarter. (Source: Amazon) Amazon Web Services public cloud.

These positive results are part of a long-term strategy that was not always profitable. If Amazon was one of the first companies in 2006 to commercialize the use by others of its IT infrastructure, this activity which requires heavy investment has long weighed on the company’s results. This is no longer the case, and million customers claiming that AWS now provide him healthy profits.

Still, the case of AWS is not unique. The public cloud generated $ 16 billion in revenue in 2014, up 48% from 2013. And if AWS has established itself as the market leader actor, Microsoft, IBM and Google also have their activity develop strongly.

Microsoft Quarterly results show for example that the use of the Azure cloud platform more than doubled in a year.

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