At The Wall Street Journal’s Tech Live conference in Laguna Beach, Matt Garman, CEO of Amazon Web Services (AWS), discussed the latest performance of AWS. In the third quarter of 2024, AWS reported a revenue increase of 19%, totaling $27.45 billion. Although this figure slightly missed analyst expectations of $27.52 billion according to StreetAccount estimates, the year-over-year growth for AWS has accelerated for five consecutive quarters. The artificial intelligence segment of AWS has surged to billions in annualized revenue, more than doubling compared to the previous year. Amazon CEO Andy Jassy highlighted the pressing demand and capacity challenges, particularly in semiconductor supplies.
AWS remains the leader in the cloud infrastructure market, outperforming competitors like Google and Microsoft. Google Cloud’s revenue rose by 35% to $11.35 billion, while Microsoft’s Azure revenue increased by 33%. AWS generated $10.45 billion in operating income, accounting for 60% of Amazon’s overall profitability, and achieved a 38% operating margin—its widest since at least 2014. In comparison, Google Cloud reported a 17% operating margin.
Amazon’s CFO, Brian Olsavsky, mentioned controlled hiring approaches during this period. The quarter also saw Oracle planning to bring its database services to AWS, with potential further collaboration anticipated by AWS CEO Matt Garman. Moreover, AWS announced plans to discontinue some services like the CodeCommit tool, reflecting the company’s strategic focus on resource allocation. Databricks, a key partner, continues to generate over $1 billion in revenue on AWS, underscoring the cloud platform’s impact and reach.
Original Story https://www.cnbc.com/2024/10/31/amazons-cloud-unit-records-highest-profit-margin-in-at-least-a-decade.html
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