The average consumer might not realize it, but the cloud is what’s keeping Amazon afloat. Without the unmistakable buoyancy of this leading technology, the online retail giant slash cloud computing company just wouldn’t be so profitable — let alone raking in $916 million in operating income this quarter.
The cloud is a hot commodity and Amazon’s recent numbers prove it. Yesterday the company reported Amazon Web Services — their public cloud — generated some $916 million in operating income in the second quarter of this year. On top of that, Amazon’s AWS is poised to take in a $10 billion income this year alone.
The average consumer who deals with the retail side of Amazon probably has no idea that some web services they don’t totally understand are what keep this leading giant so profitable. In fact, it’s the revenue from AWS that most likely helps AWS continue to expand across all its ventures (think: their latest buy-up of grocery stores for a cool $13.7 billion). And in reality, that’s a pretty big feat for something that was a gamble a few years back.
That’s because while today AWS is the leading public cloud on the planet, it was not so long ago that Amazon was taking a major risk building storage facilities for giant servers they expected businesses would need to stay competitive in the years ahead. Today, enterprises are spending more and more on public cloud computing resources, and Amazon’s foresight to essentially built up the basis of modern cloud computing paid off well.
But while Amazon Web Services might be on top now, they also have some stiff competition. This year AWS is poised to grow by 40 percent, but that’s down from 58 percent the year before. Microsoft’s public cloud, on the other hand, Azure, is expected to see their services grow by whopping 97 percent in 2017. The two CEO’s are in an epic battle of their own for the title of ‘Worlds Richest Man’, something Amazon’s Jeff Bezos briefly stole from Bill Gates on Thursday morning before stocks fell back down.
Whether Amazon stays on top (of the cloud, that is) is up to them, and will probably be based on the same kind of risky investments that got them there in the first place. Nonetheless, other leading public cloud providers like Alphabet (Google) and Alibaba are clamoring for the same spot.
Now, we don’t usually like to throw around numbers like the market experts do, but this is an exception. The numbers out behind Amazon show just how leading this technology is for enterprises all over the world, and how big of an investment this can be for the leading tech companies. Whether Amazon stays on top has yet to be determined, but it’s clear that the cloud itself isn’t going anywhere anytime soon.
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