Shulou(Shulou.com)11/24 Report--

According to reports, Amazon recently released third-quarter results, data show that its cloud computing business (AWS) growth slowed, up only 27.5% year-on-year, revenue and profit figures fell short of Wall Street analysts' expectations.

It is reported that this is the slowest growth rate of Amazon's cloud computing business since 2014 (when the operating indicators of the cloud computing business were released separately for the first time that year).

Amazon's cloud computing division had revenue of $20.5 billion in the third quarter, but Wall Street analysts surveyed by professional firm StreetAccount had an average expectation of $21.1 billion for cloud revenue, according to earnings data. In contrast, revenue from Amazon's cloud computing business grew by 33% in the second quarter.

Cloud computing accounted for 16% of Amazon's total revenue in the third quarter. In a conference call with earnings analysts, Brian Olsavsky, Amazon's chief financial officer, said revenue growth at Amazon's cloud computing division was about 25 per cent at the end of the third quarter.

In 2006, Amazon officially entered the emerging cloud computing market. Amazon won 39% of the global cloud computing market in 2021, but down from 41% in 2020, according to Gartner, a technology market research firm.

Gartner said that competitors such as Microsoft and Google will increase their market share in cloud computing in 2021. Over the past decade, there has been a relatively steady growth in the cloud computing industry as enterprises or government departments around the world gradually transfer computing tasks or storage work to the "cloud" (Internet platform).

At the analyst meeting, Olsavsky said that the current macroeconomic uncertainty, leading to more and more Amazon cloud computing customers began to control spending, Amazon is actively helping customers to optimize costs. In fact, Amazon has done the same in times of economic uncertainty in history.

The executive said the breadth and depth of Amazon's cloud computing services allow corporate customers to adjust flexibly, such as moving the web data storage business to a cheaper level. or transfer computing tasks to Amazon's own "gravitational subprocessor".

Amazon's cloud computing business made an operating profit of $5.4 billion in the third quarter, below the average analyst estimate of $6.37 billion. In addition, Amazon's company-wide operating profit is $2.53 billion.

It is reported that the operating profit margin of cloud computing business has dropped from 29% of Q2 to 26.3% of Q3. Olsavsky explained that Amazon faced wage increases in 2022, especially in the cloud computing division, and higher energy prices also affected operating margins.

Olsavsky said that rising costs are also a new problem for the cloud computing business. "We are struggling with difficulties."

In the third quarter, Amazon's cloud computing division opened its second data center in the Middle East country of the United Arab Emirates. The department also announced the launch of "serverless services", which can help external developers quickly deploy data analysis tools through cloud computing, minimizing the burden of server management.

Within Amazon, the revenue growth rate of the cloud computing division is still higher than that of the core e-commerce division, but the cloud computing business has also slowed the pace of social recruitment.

A spokesman for the cloud computing department recently said that in some parts of the cloud computing business, people are fully filled, but in others, there is still a shortfall of thousands of jobs. It is worth mentioning that both Google and Microsoft have recently announced that they will slow the increase in the size of their employees.

When it comes to Amazon as a whole, growth in several businesses slowed slightly in the third quarter, and management expects the trend to continue into the current fourth quarter, Olsavsky said.

Regardless of size, many US companies or institutions are reconsidering their spending on technology, and Amazon is working with corporate customers to help them reduce costs, the executive said.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.