Thursday, April 28, 2016

Amazon’s Web Services are shining in its latest earnings beat | TechCrunch

A multifaceted AWS milestone

"It’s always impressive for a company that, for most of its lifetime, has been focused entirely on its commerce side is able to grow a new business from scratch, given that other larger technology companies are also throwing concepts at the wall looking for new lines of business. For Facebook, it’s VR and services like WhatsApp. For Google, it’s the company’s moonshots like self-driving cars. These have yet to come to fruition, while AWS is showing that it’s becoming a real business.

Even more interestingly, Amazon’s AWS division posted an operating income even higher than its core business in North America. The company said AWS posted an operating income of $604, compared to operating income of $588 in its core business in North America. This is a business that, while generating less than its e-commerce business, seems at first blush operationally more efficient and still growing at a health rate. Bezos himself said that he expects AWS to be a $10 billion annual business in his 2015 letter to shareholders."
Amazon’s Web Services are shining in its latest earnings beat | TechCrunch
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