Amazon’s cloud division has once again helped the company achieve record revenues amid growing demand for AI and related technologies.
Amazon Web Services (AWS) revenue grew to $26.28 billion in 2016. Q2 2024exceeded analysts’ expectations, generating quarterly earnings of $9.3 billion.
The results show that AWS now accounts for 18% of the parent company’s total revenue and 63% of total income.
AWS Capacity Increase
The news came as Amazon CEO (and former head of AWS) Andy Jassy celebrated the division’s success, highlighting its “billions of dollars in revenue.”
“The reality now is that while we are investing a significant amount of money in the AI space and [on] infrastructure, we want to have more capacity than we have now,” Jassy said during the earnings call. “We have a lot of demand now and I think it’s going to be a very, very big business for us.”
AWS has been the leader in the global cloud market for quite some time, despite close competition from Microsoft Azure and Google Cloud with continuous improvements and upgrades.
However, AWS has also recently unveiled a host of new updates and enhancements, including an increase in the value of cloud credits available to eligible startups, doubling the amount previously available to help them grow and scale their businesses.
The company also claims to have achieved its goal of teaching 29 million people cloud computing skills for free a year ahead of the 2025 deadline, benefiting 31 million people from 200 countries.
However, the company’s success has also led to the UK Competition and Markets Authority (CMA) launching an investigation into the company’s dominant position in the UK cloud market.
“We continue to make progress on a number of fronts, but perhaps most notably through the continued acceleration of AWS growth,” Jassy added.
“As enterprises continue to modernize their infrastructure and move to the cloud, while leveraging new generative AI capabilities, AWS remains the first choice for customers because we have much broader functionality, superior security and operational performance, and a larger partner ecosystem.”
