Somehow, AWS and cloud growth continues to accelerate


If the numbers weren’t so clear, I’m not sure I’d have believed it was possible. After all, an enormous business that earned $17.46 billion in 2017 and grew approximately 45 percent is bound to slow down, right? Simply maintaining that insane level of growth would be virtually impossible, right?

But somehow, Amazon Web Services (AWS) is actually boosting its growth. After expanding by 42 percent in the third quarter of 2017, AWS increased that number to 45 percent in the fourth quarter … and then did it again, growing 49 percent in the first quarter of calendar 2018.

In financial results announced last week, the cloud infrastructure leader blew past Wall Street estimates, as well, with earnings of a whopping $5.44 billion, leading to a healthy $1.4 billion in operating income, up 57 percent. Amazon CEO Jeff Bezos highlighted the growth in a statement:

AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down. As a result, the AWS services are by far the most evolved and most functionality-rich. AWS lets developers do more and be nimbler, and it continues to get even better every day. That’s why you’re seeing this remarkable acceleration in AWS growth, now for two quarters in a row.

Significantly, Amazon CFO Brian Olsavsky added that usage growth is outpacing revenue growth as the company continues to add new features and capabilities.

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