Cloud Computing Dominates Amazon Profits

Cloud Computing Dominates Amazon Profits

Amazon reported improved earnings of over $3 billion from 2018. A large portion of that came from Amazon Web Services(AWS) generating $1.3 billion in operating income. AWS cloud computing services have been a key factor in reaching revenue and profit goals in the recent quarters.

Patrick Moorhead, an analyst at Moor Insights & Strategies stated, “Amazon had a blowout quarter, lead by its Amazon Web Services public cloud division. Amazon Web Services grew 45% year on year for the quarter at $2.3 billion. The Amazon Web Services business is very profitable, generating $1.3 billion in operating income, more than all other businesses combined.”

Amazon reported its third record profit in a row due to a successful year for cloud computing and clever advertising. Their yearly profit of $3.75 a share in 2018 jumped to $6.04 a share meaning there was a revenue growth of 20% to $72.38 billion.

Additionally, CEO Jeff Bezos stated that the Echo Dot was the best-selling item across all products on Amazon globally during the holiday season, which sold millions more than last year. The Echo Dot is a part of Amazon’s virtual assitant, Alexa, which rivals Siri from Apple or Cortana from Microsoft.

For the full article by CloudPro, check it out here.

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