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Amazon’s main business is not in electronic commerce, but in its cloud services

Although Amazon is known worldwide for its ecommerce platform, its main business is in its cloud services. Amazon Web Services had a turnover of 7.430 million dollars in the last three months of last year and 25.650 million in the global course.

Amazon Web Services CEO, Andy Jassy, anticipated that his company has 51.8% of the market share in the cloud, well above the 13.3% held by Microsoft.

There is no one on planet Earth who does not know Amazon or its media founder, Jeff Bezos. Not in vain, the American firm is the great colossus of electronic commerce in the West, with reigns equally notable in the sale of electronic books or music and streaming series.

A multinational that invoiced nothing less than 72,400 million dollars in the last quarter of 2018, 20% more than in the same period last year, making annual revenues amount to more than 232,900 million dollars.

Very positive numbers, although they show a certain degree of deceleration (once the year-on-year growth rate was around 38%) and also hide the high level of expenditure associated with a company dedicated to the purchase and sale of products: ‘just’ 10,000 million dollars of benefits throughout the course.

But what is perhaps not so well known is that the most profitable business of the entire group is none of the aforementioned, but its cloud services division for companies and developers. Amazon Web Services, which is the name of the unit in question, had a turnover of 7,430 million dollars in the last three months of last year -25,650 million in the course overall-, experiencing a spectacular 45% increase over the data offered in an exercise. back (5.110 million). If we talk about profits, operating income is around 2,180 million dollars, far exceeding the 2,090 million estimated by analysts.

With these figures, we can see how AWS accounts for only 10% of Amazon’s total billing in the fourth quarter of 2018. Although if we stick to the operating benefits of the group, the thing changes substantially: 58% of these come from the cloud services

A reign indisputable?

The enormous weight that Amazon Web Services has over the total of the multinational company of Jeff Bezos is easily understood if we consider two factors: the consolidation of cloud computing as a default ICT deployment model and the pioneering and hegemonic position of AWS in that business.

In a recent conference, the CEO of Amazon Web Services, Andy Jassy, anticipated that his company has 51.8% of the market share in the cloud, well above the 13.3% held by Microsoft, the 4.6 % of Alibaba or 3.3% of Google.

However, this data is very skewed by the interested party, since according to a report by Synergy Research, published in the middle of last year, Amazon Web Services has a 33% market share, the same percentage Approximately the one he had a year before, which shows his difficulty to continue growing in quota in a business segment in full boil.

On the contrary, and always according to this source, its rivals do grow by leaps and bounds: Microsoft Azure already reaches 13% of the business, rising from the 10% recorded a year ago, with IBM, Google and Alibaba closing this particular ‘top five ‘

Published inCloudE-commerce

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