AWS quarterly revenue continues to rise, but growth slows

The cloud platform provider's fourth quarter 2016 revenue passed $3.5B

The rocketship of cloud growth continued at the end of 2016 for Amazon Web Services.

The public cloud provider announced Thursday that it brought in a little more than US$3.5 billion during the fourth quarter of last year, up 47 percent from the same period in 2015.

Quarterly operating income rose 60 percent to $926 million, compared to $580 million during the prior year quarter.

That's nothing to sneeze at, but AWS's revenue growth was the lowest it has been in the past two years.

There are a number of potential explanations for that, including seasonal changes in cloud migrations, and increasing difficulties on Amazon didn't provide an explanation for that, but it likely has to do with AWS's growing revenue base overall.

Continuing growth is a positive sign for AWS, which is locked in tight competition with companies including Microsoft and Google to try and power the next generation of business applications.

Amazon said AWS launched 1,019 new features in 2016 as part of that push.

Microsoft’s Intelligent Cloud revenue segment brought in $6.9 billion in revenue during the same period. However, that also includes revenue from sources beyond its Azure cloud platform, including licenses for software including Windows Server and SQL Server.

A series of price cuts for AWS services kicked in during the quarter. Amazon CFO Brian Olsavsky said on a conference call with financial analysts that such cuts are "going to be a constant in this business."

It's unclear exactly what impact they may have had on the cloud provider's overall financial results.

Overall, Amazon's fourth quarter revenue was $43.7 billion, up 22 percent from $35.7 billion at the end of 2015.

The company's fourth quarter profit was $749 million, compared to $482 million during the prior year quarter.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags amazon.com

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 Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?