AWS financials

Main article: Amazon Web Services (AWS)

2024: Global Cloud Infrastructure Services Market Leadership

AWS revenue in 2024 exceeded $107 billion vs $62.2 billion in 2021, $35 billion in 2019 and $15.8 billion in 2017.

Amazon invests all resources in AWS, which generate about half of operating profit, because trading is low-margin.

AWS controls about 1/3 of the global cloud infrastructure services market, Microsoft Azure is in second place - about 23-25% and Google Cloud Platform (GCP) - about 10-13%, i.e. up to 70% of the market under three companies with share growth and capture potential up to 80% by 2027. Others include Alibaba Cloud, IBM Cloud and Oracle Cloud.

Up to half of all GIYA startups weighted by revenue are based on infrastructure Amazon , according to preliminary estimates, but Microsoft Google wants to take this share, it intervenes in the game. Meta

2020: Revenue growth 30%, to $45.37 billion

In 2020, Amazon Web Services (AWS) revenue amounted to $45.37 billion against $35 billion a year earlier. One of the main reasons for such a strong rise (by 30%) in Amazon's cloud business is the COVID-19 coronavirus pandemic, in which people have become more likely to stay at home and use online tools for work, study and entertainment purposes.

Amazon Web Services' profit at the end of 2020 reached $13.53 billion, which also significantly exceeds the result of a year ago - in 2019, profit was measured at $9.2 billion. Amazon's cloud division accounted for 12% of the company's total revenue, and its profit share exceeded 50%.

Amazon Web Services Quarterly Revenue Growth

According to Amazon, in 2020, the company allowed customers to use its two cloud services to manage software containers in local data centers, and not just based on the data centers of Amazon itself.

Summing up the results of 2020, the company noted the launch of free training of people in cloud technologies. Amazon hopes that by 2025, up to 29 million people around the world will take these educational courses.

As part of the AWS Activate program, Amazon has provided startups with discounts totaling more than $1 billion to work with AWS cloud services in order to support the scaling of their business.

Amazon has secured several major cloud contracts in 2020. Among them are JPMorgan Chase, Itaú Unibanco (Latin America's largest bank) and Standard Chartered Bank, Metro-Goldwyn-Mayer (MGM), Thomson Reuters, ViacomCBS, ARM, Twitter, Siemens Smart Infrastructure and BMW Group.

By the end of 2020, AWS has 77 so-called Availability Zones within 24 geographical regions. The company plans to increase these indicators by 18 and 6, respectively.^[1]

2019: Revenue growth to $35 billion

In 2019, Amazon Web Services (AWS) revenue for the first time exceeded $35 billion and reached $35.03 billion. Profits also increased - $7.3 billion to $9.2 billion. At the same time, the operating costs of the Amazon cloud division are also growing: if in 2018 they were measured at $18.36 billion, then a year later - $25.83 billion.

AWS accounted for about 12.5% of revenue at the end of 2019 against 11% in 2018. The share of cloud business revenues is increasing, but the growth rate is decreasing as revenue reaches large values.

AWS revenue growth dynamics

AWS's 12-month revenue reached $40 billion. The company reduced prices for customers with multi-year contracts and entered into long-term agreements for $30 billion, the conditions of which will be fulfilled in the long term.

In 2019, Amazon entered into contracts to use its cloud services with a number of large customers, including Western Union, Fox Corporation, Novartis, BP, German football Bundesliga and television company ProSiebenSat.1 Media SE.

We still see a lot of momentum among customers in industries ranging from startups to corporate clients to the public sector, "said Amazon CFO Brian Olsavsky, commenting on the success of the cloud division.

By the end of 2019, 175 AWS services are available to customers, up 75% from two years earlier. Gartner analysts estimate the company's share in the global cloud services market at almost 50% at the end of 2019.

There have been rumors that Amazon may split AWS into a new self-driving company, but the internet retailer has repeatedly denied them.^[2]

In an interview with CNBC in January 2020, AWS chief Andy Jassy said he did not expect the cloud division to secede anytime soon.

We simply do not see a significant reason to do this, "he said.

2018

Revenue of $25.7 billion (+ 47%), which is more than McDonald's

In 2018, Amazon Web Services (AWS) revenue amounted to $25.7 billion, an increase of 47% compared to the previous year. Amazon earned more on cloud services than all of McDonald's: sales of the popular fast food chain reached a little more than $21 billion in 2018.

Amazon's cloud business continues to grow rapidly, but growth is declining. This could be expected, given the large sales volumes that the company has achieved, Quartz notes.

Amazon Web Services financials

The AWS division earned Amazon more than 11% of revenue and more than half of its 2018 earnings. Profit in the cloud business in 2018 amounted to $7.3 billion against $4.33 billion a year earlier.

Profits increase despite rising costs. In 2018, they were measured at $18.36 billion, while in 2017 they were $13.13 billion.

In 2018, revenue for all of Amazon jumped 31%, with AWS contributing 47% to the climb. This is more than the contribution of the North American market (33%) and the rest of the countries combined (21%).

During a conference on the publication of Amazon's quarterly and annual reports, the company's CFO Brian Olsavsky said that spending on buildings and equipment used to operate cloud services will increase in 2019.

In 2018, AWS services covered two new regions, and by the first half of 2020 it is planned to master four more regions and 12 new accessibility zones within these regions.

In 2018, AWS had many new customers, including Ellie Mae, Korean Air, Santander Openbank and Pac-12. Mobileye and Guardian Life Insurance named AWS as their preferred cloud provider, and the National Australia Bank chose AWS as its long-term partner in terms of cloud service adoption.^[3]

Revenue growth in the segment of software platform solutions based on AI by 106.3%

2017

Record revenue of $17.5 billion amid giant US government orders

In 2017, Amazon Web Services (AWS) revenue amounted to $17.5 billion against $12.2 billion a year earlier. Amazon's cloud business rose from $3.1 billion to $4.3 billion during that time .

According to the publication "Vesti.Ekonomika" from 2014 to 2017. Amazon Web Services provided to the United States Government CIA(,, NSA, etc.) Pentagon their "cloud" data services, which have since accounted for virtually all of Amazon's profits, although Amazon is not even on the government's top 100 contractors list, USA so this extremely profitable business is more important to (Jeff Bezos also the owner of the Washington Post) than all his other investments, combined New^[4]

The cloud services division brings Amazon all the profits and about 10% of revenue. In 2016, the last figure was measured at 9%.

AWS revenue growth dynamics

At the same time, expenses continue to grow in the unit: in 2017, they exceeded $13 billion, while in 2016 they amounted to $9.1 billion.

According to Amazon CFO Brian Olsavsky, AWS's 12-month revenue reached $20 billion during 2017.

There are several enterprise solution providers that have annual revenue approaching $20 billion, but Amazon is still growing faster - more than 40%, analysts at KeyBanc say.

Amazon's cloud business grew in 2017 despite strong competition from Microsoft and others, GeekWire noted. At the same time, Amazon's competitors do not disclose revenues from services designed to deploy cloud infrastructure, which the American Internet giant specializes in. Judging by the results of AWS, the division hardly lost any share of this market, the publication adds.

During a conference on the publication of the financial statements, Brian Olsavsky rejected the possibility of a branch of Amazon Web Services. According to the top manager, such a restructuring can be effective on the one hand, but on the other hand it will become a big problem. Both Amazon and AWS get more from working together, though to some extent they function separately from each other, Olsavsky reported.

In 2017, several large companies became AWS customers, including Expedia, Ellucian, DigitalGlobe and The Walt Disney Company.^[5]

1300 new features

At AWS re: Invent, which took place in Las Vegas from November 27 to December 1, 2017, Amazon announced a major update to its cloud infrastructure.

Amazon Web Services (AWS) solutions received 1,300 new features, while in 2016 the number of innovations was just over 1000.

Among the cloud innovations presented as part of AWS re: Invent 2017, it is worth highlighting the SageMaker service, designed to create a machine learning model. SageMaker implements ten well-known algorithms for supervised and uncontrolled learning. Processes can be run in parallel on dozens of instances, which greatly speeds up the construction of the model.

At the AWS re: Invent conference, the company Amazon announced a massive upgrade to its cloud infrastructure.

Solutions such as Amazon Rekognition (identifies objects and faces in custom videos), Amazon Transcribe (converts speech to text), Amazon Translate (language translator) and Amazon Comprehend (analyzes text for key phrases and emotional coloring) were also introduced.

In addition, new tools for Amazon Web Services allow you to record phone calls and study them, determining, for example, whether a client is happy with communication with a company employee or not. Thanks to these technologies, organization leaders can control the activities of their subordinates and train them.

According to Reuters, many of the services that Amazon introduced at the end of 2017 were launched by competitors earlier. For example, a language translator from Microsoft was launched back in 2011, and the Google Natural Language API, a rival to Amazon Comprehend, became available to the general public in November 2016. During 2017, Microsoft and Google launched several services that use the capabilities of artificial intelligence and have functionality similar to that used by Amazon in their products announced at AWS re: Invent 2017^[6]

2016: Record revenue of $12bn

On February 2, 2017, Amazon released its financial results for the previous year. The company's revenues in the cloud market were record, but the growth rate is weakening.

In 2016, revenue from Amazon Web Services (AWS) amounted to $12.2 billion against $7.88 billion a year earlier. The company predicted cloud revenue of $10 billion at the end of the year.

AWS revenue and profit growth dynamics in 2016

AWS 'operating profit doubled, from 1.5 billion to 3.1 billion. dollars Operating expenses rose from $6 billion to $8.5 billion. Cloudy the business brings Amazon about 9% of turnover.

Cloud computing is driving profit growth. They really help the company be profitable every quarter, "said Louis Navellier, chairman of the board of investment company Navellier & Associates, in an interview with CNBC.

AWS's revenue growth rate declined throughout 2016. In the fourth quarter, its growth was 47.5% against 55, 58% and 64% in the previous three calendar quarters, respectively. Analysts attribute the weakening dynamics of sales in the cloud services market to increased competition.

In 2016, the number of new services and functions included in Amazon Web Services increased by more than 1,000. In October-December alone, the number of innovations was measured at 308. In 2016, customers transferred more than 18,000 databases to the Amazon cloud using the AWS Database Migration Service tool.

By the end of 2016, AWS had 42 zones deployed in 16 regions of the world on which they were built. In data centers 2016, the company opened 11 such zones in,, USA, and South Korea. In India To Canada Great Britain 2017, it is planned to open 5 more zones in and. France China

After the financial statements were published, Amazon shares fell in price by more than 4% in electronic trading after the exchange closed on February 2, 2017. The slump in quotations came as the company's fourth-quarter earnings and first-quarter guidance were below Wall Street expectations.^[7]

2015

Revenue growth to $8 billion

On January 28, 2016, Amazon released a financial report detailing the development of its cloud business. Its growth slowed down, and its annual volume approached $8 billion.

At the end of 2015, AWS revenue amounted to $7.88 billion against $4.64 billion a year earlier. The operating profit of the cloud division during this period almost tripled, reaching $1.86 billion. Operating expenses rose by more than 50% and exceeded $6 billion.

AWS Revenue Size and Growth Rate Change Chart for the Second Quarter of 2014 through the Fourth Quarter of 2015, Amazon Data

In 2015, the number of new services and functions added to AWS increased by 722, which is 40% more than in 2014.

In the fourth quarter of 2015, AWS revenue jumped 69% compared to the same period of the previous year, but the growth rate was lower than in the third and second quarters, when the cloud business grew by 78% and 82%, respectively. At the same time, Amazon CFO Brian Olsavsky says that excluding currency fluctuations, AWS is showing a strong rise in both quarterly and annual terms.

Olsavsky also noted that at the end of 2015, the AWS division approached potential annual revenues of $10 billion.

We feel leadership in this market, but we don't take it for granted, "the financial director said on a conference call with analysts. - We want to improve customer service from year to year.

By the end of 2015, more than 1 million customers use AWS services, including such well-known services as Netflix and Airbnb. The cloud business is increasingly profitable for Amazon: in the fourth quarter of 2015, AWS operating margin rose to 28.5% from 16.9% in January-March of the same year. That rise, Brian Olsavsky said, came from the company's great work to improve business efficiency. In particular, the costs of purchasing new and operating existing servers and data centers were reduced, the top manager noted.^[8]

Q1: Cloud business revenue up 50% to $1.57 billion

On April 29, 2015, Amazon.com Inc published the results of the first quarter of 2015, which attracted the attention of investors^[9].

Revenue from the cloud business, compared to the previous year, grew by almost 50% and reached $1.57 billion, which amounted to about 7% of the total income of the Internet retailer. The operating income of the division grew by 8% and reached $265 million - a stable profit rate of 16.9%.

Jeff Bezos, head of Amazon, said: "Amazon Web Services is a five billion dollar business and is growing at an increasingly rapid pace."

Cloudy calculations turned out to be more profitable than expected, analysts noted. Cloud services Amazon make a profit, and a year ago they, apparently, were also profitable, nevertheless everyone thought that the company was losing money.

Total income Amazon in the first quarter of 2015 increased by 15% - to $22.72 billion - this turned out to be better than analysts' expectations ($22.39 billion), which caused the company's share price to rise. However, at the end of the quarter, Amazon reported a loss of $57 million (compared to a profit of $108 million in 2014), as it continued to invest in new products and services.

2014: Gartner Magic Quadrant

In 2014, Gartner analysts published a magic quadrant in cloud services and cited Amazon's main strengths and weaknesses.

Strengths: AWS has built its cloud so that it can accept almost any workload, and this makes it popular with small firms, organizations with critical applications and web developers. The vendor's market share is not disputed by anyone - according to Gartner (2014), Amazon sells 5 times more computing power than the remaining 14 companies in the quadrant combined.

What to consider: The biggest claim to AWS is that all "supplements" are paid separately. Amazon doesn't create ready-made packages like some of its competitors. This lack of service and support especially alienates some users from it, since these items mean an additional line of expenses in their service bills.

Notes