Though Amazon’s cloud business, Amazon Web Services, accounts for only 7 percent of the company’s overall quarterly revenue of $22.72 billion, it is profitable — and that’s sending shares of the oline e-commerce giant surging.
AWS is growing at a much faster rate than the rest of Amazon. Its cloud business grew 49 percent, while the company’s North American core business increased 22 percent.
Amazon on Thursday broke out the finances of it cloud computing service for the first time, wowing Wall Street. Companies use AWS to host applications, instead of using their own costlier data centers and necessary hardware. Amazon revealed that AWS is on a $6 billion-plus annual run rate, which makes it the biggest cloud infrastructure provider.
AWS grew 49 percent in 2014, taking in $4.6 billion in revenue. In its latest financial earnings report, Amazon said AWS pulled in $1.57 billion in the first quarter of this year, and is on track for $6.23 billion in sales by 2015’s end.
In a statement, CEO Jeff Bezos said: “Amazon Web Services is a $5 billion business and still growing fast — in fact it’s accelerating. Born a decade ago, AWS is a good example of how we approach ideas and risk-taking at Amazon… We manage by two seemingly contradictory traits: impatience to deliver faster and a willingness to think long term.”
That number might not seem big compared to the tens of billions in revenue Amazon generates through its bread-and-butter online business. But in revealing the size of Amazon Web Services for the first time, the e-commerce giant provided a preview of the broader business model that will define its future. However, if you’re thinking of using Amazon’s exciting and ever-growing service, you may want to think about how secure it is. Some individuals and businesses have made use of AWS microsegmentation as an attempt to secure their online data. This might be worth looking in to if you’re considering joining Amazon Web Services for cloud computing.