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Amazon Makes Over $10 Billion In Revenue From Its Cloud Services

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Amazon is the worldwide market leader when it comes to cloud service alright, however, its cloud business has, for the first time ever, crossed $10 billion in revenue in the first quarter of 2020.

 

Amazon Web Services’ (AWS) revenue grew by 33% on an annualised basis. The service generated $10.22 billion in revenue according to a statement from the company.

 

Analysts had expected $10.33 billion in revenue in the quarter of 2020. But due to the global coronavirus pandemic, AWS was unable to attain that mark.

 

In spite of this, Alibaba, Google, IBM, Microsoft, and Oracle all continue to trail AWS in revenue. Microsoft, which analysts believe to be second in providing cloud infrastructure didn’t disclose its revenue. It, however, disclosed that its revenue from the Azure cloud services grew by 59% in the quarter.

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Although Oracle was founded 30 years earlier, AWS, which was launched in 2006, is now the market leader. The service accounted for 13.5% of Amazon’s total revenue in the first quarter. Oracle’s 2019 first-quarter revenue was $9.8 billion as announced in March 2020.

 

Goldman Sachs analysts, led by Heath Terry, have raised their estimates for the first (and second) quarter AWS revenue in an advisory note distributed to clients.

 

“Our partner checks continue to reflect the relative strength in the AWS platform, as incremental demand from customers to accelerate their migration into the cloud, provide full virtual-desktop coverage (AWS WorkSpaces), and other work-from-home and business continuity needs, seem to have more than offset the disruption from longer sales cycles and delays in planned migrations as IT priorities have shifted in the current environment,” the note read.

 

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