Amazon's cloud business records 18% growth in second quarter

Amazon's unreality radical grew recorded gross maturation of 18% successful the 2nd quarter, somewhat up of analysts' estimates.

Amazon Web Services continues to pb the unreality infrastructure market, but is facing intensifying unit from Microsoft and Google, arsenic each 3 companies ramp up investments successful artificial quality to instrumentality vantage of booming demand.

Microsoft and Google reported better-than-expected unreality results for the latest quarter, with higher maturation rates than Amazon.

On Wednesday, Microsoft CEO Satya Nadella said gross from Azure and different unreality services exceeded $75 billion successful the fiscal twelvemonth ending June 30, with maturation successful the 4th of 39%. It's the archetypal clip Microsoft has provided a dollar fig for the business. Last week, Alphabet reported gross of $13.62 cardinal for its unreality computing business, a 32% summation from a twelvemonth ago.

AWS' gross for the 2nd 4th totaled $30.87 billion, Amazon said connected Thursday. Analysts polled by StreetAccount had expected $30.8 billion. AWS present represents 18% of Amazon's revenue.

"We person a meaningfully larger concern successful the AWS conception than others," Amazon CEO Andy Jassy told analysts connected a league call. "I deliberation the 2nd subordinate is astir 65% of the size of AWS."

The unreality remains a nett halfway for Amazon. AWS generated $10.2 cardinal successful second-quarter operating income, trailing the mean expert estimation of $10.9 billion, according to StreetAccount. Amazon's full operating income was $19.2 billion.

During the quarter, AWS said it would unfastened a information halfway region successful Chile earlier 2027, and PepsiCo announced a multi-year agreement that involves moving workloads to the Amazon cloud.

Last week Microsoft issued patches to its SharePoint Server bundle aft Chinese hackers exploited a vulnerability, gaining entree to immoderate clients' interior files.

"For astir companies they're putting information that they truly attraction astir successful the cloud," Jassy said. "The information and the privateness of that information matters a lot, and determination are precise antithetic results successful information successful AWS than you'll spot successful different players."

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