Massive growth shows why Amazon is the public Cloud leader

Sixty-four percent revenue growth shows how much companies rely on AWS

Amazon has shown off its dominance in the public Cloud market as the capstone to a better than expected quarterly earnings report.

Revenue from Amazon Web Services during the first quarter of 2016 was up 64 percent year-over-year, showing the big money that's still out there as companies invest more and more in the public Cloud.

Amazon's cloud platform generated revenue of $2.56 billion, putting it on pace to make $10 billion this year, in line with a letter from CEO Jeff Bezos sent to shareholders earlier this month. That's big money to go with Amazon's massive customer base, which includes names like Netflix, Time Inc., and Intuit.

Right now, Amazon is sitting pretty in the public Cloud business - it's the leading player by a large margin, and these revenue numbers show how well it's doing.

One risk that Amazon Director of Investor Relations, Phil Hardin, pointed out on a call with financial analysts is that the profit margins for AWS will likely be "bumpy" going forward as Amazon continues to invest in new infrastructure and other technologies, in addition to lowering costs for its services.

The company is also facing tough competition from both its neighbor Microsoft and a variety of other companies, including Google and IBM. Cloud adoption among companies is still in its early days, so Amazon doesn't have a lock on the market just yet. What it does have is a commanding leadership position that's making a lot of money. AWS produced operating income of $US604 million, up from $US195 million a year earlier.

Looking at its business overall, Amazon smashed expectations for how well its first quarter would go, with total revenue of $US29.13 billion, up 28 per cent, and earnings of $US1.07 per share. The earnings number is especially notable, considering that Amazon is known as a company that frequently doesn't turn a profit. (This previous quarter marks the fourth in a row that Amazon posted a profit, however.)

Join the PC World newsletter!

Error: Please check your email address.


Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Blair Hanley Frank

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles


GGG Evaluation Team

Kathy Cassidy


First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni


For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell


The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi


The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott


My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?