Amazon Q3/2016: cloud computing arrays set a new record

Latest business technology news informed that they got 32.7 billion revenue. The business segment about cloud computing of Amazon continues rapid growth. And it sets new records, but there is a worrying thing.

Business segment cloud computing of Amazon has officially reached $ 10 billion revenue mark annually, well ahead of rivals Microsoft and Google. Amazon Web Services also occupies almost the entire cloud computing market in the world. They are owning both large corporate clients, as well as the newly established small startup.

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Only a few people know that to achieve today, the Amazon Web Service has to go up from this retail clients. It is the small businesses, the new startup had founded. They also search for data storage solution on the cloud platform instead of investing in building the data center.

Cloud computing offers a simple solution, cost-effective and more flexible for startups and small businesses. Therefore, it is also a potential market, where providers of cloud computing platforms missing.

Amazon does not like that. They are still fully owned cloud computing market for small and medium. According to the Pacific Crest, Amazon Web Service is ousting rivals Microsoft and Google out of this division.

New survey

According to the survey, about 300 companies with average revenue in 2015 are around $ 5 million. A huge number of companies 50% said they chose the AWS for cloud computing platform.

Microsoft Azure accounts for 4%, while Salesforce accounts for only 2%. Google did not even list, and among the cloud computing platform remainder, totaling 10%. The remaining 33% are self-built enterprise data centers of their own.

That is not all, Amazon said that the next direction is to increase market share of AWS in this segment increased 64% in the next 3 years. Amazon has a very clear strategy when they want to invade the whole array of cloud computing for this small and medium enterprise.

The giant online retailer Amazon announced their financial report Q3 / 2016, with $32.7 billion of total revenue and exceeded the expectations of investors. But online retailer is not a business which is the most interest of Amazon.

Investors and analysts only pay attention to cloud computing business of Amazon Web Services. In Q3 / 2016, AWS continued to achieve record sales $ 3.23 billion and record profit with $ 861 million.

Summarizing 4 quarters recently, AWS has reached $11.08 billion in revenue that marks a very important milestone, becoming the first cloud computing business in the world that can exceed $ 10 billion in sales.

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Director Michael Graham of a financial company, Canaccord Genuity, said: It’s really important and has great meaning, because, in just a few years, AWS will account for half of Amazon’s revenue and strong growth momentum.

The rate is slowing down

However, the growth rate of AWS is increasingly slowing down. In Q2 / 2016, it was 58% growth. As earlier, the growth rate was 64% in Q1 / 2016. Up to now, the growth rate was only 55%.

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Despite remaining an impressive figure, it makes investors feel anxious. Their rival, Microsoft Azure are galloping develop more than 100%. Currently, Azure cannot threaten to AWS, but at this rate will soon come a day when Amazon should be worried.

 

Amazon Amazon Web Service AWS business technology news cloud computing Google Microsoft Microsoft Azure Pacific Crest records

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