AWS is the growth engine behind Amazon’s revenue and profitability

Amazon’s cloud infrastructure subsidiary AWS reported strong year-over-year growth in both revenue and profit in the second quarter of the current calendar year. This partly offsets the losses incurred by the parent company and the retail business of the business.

In the three months ended June 30, AWS reported revenue of $19.73 billion, up from $14.809 billion in Q2 2021. Operating profit came in at $5.715 billion, up more than 36 percent. “AWS continues to grow at a rapid pace,” said CFO and Senior VP Brian Olsavsky. “We believe we are still in the early stages of cloud adoption by enterprises and the public sector.”

Investment in new infrastructure

Amazon sees great opportunities to continue investing on behalf of AWS customers, Olsavsky said. We continue to carefully invest in new infrastructure to meet capacity needs, as we expand AWS into new regions, build new services, and work quickly to improve existing services.

Amazon made $60 billion in capital investments last year, 40 percent of which went to AWS. New customers to sign up for the cloud computing service include UK telecoms operator BT, Delta Airlines and investment bank Jefferies.

AWS has 84 so-called Availability Zones in 26 geographic regions — and 24 are planned. New zones will be established in countries such as Canada, Australia, India, Israel and Spain.

Cost-cutting services

Olsavsky emphasized that AWS releases services to help customers reduce costs. The company released 200 releases last quarter to improve its services, including Graviton 3 processor-based computing and AWS mainframe modernization.

See also  Vaccines are thrown away - VNL

Amazon’s total sales rose 7 percent to $121.2 billion. Excluding the $3.6 billion adverse currency impact from the year-over-year change in exchange rates, sales would have increased 10 percent, Olsavsky said. Operating income fell to $3.3 billion from $7.7 billion a year.

Leave a Reply

Your email address will not be published.