Amazon’s cloud bet has paid off: 1 million users and $10 billion in sales

Amazon CEO Jeff Bezos during the D6 Conference

Over the past few years, there has been increasing interest in the field of cloud computing, and whilst players like Google and Microsoft have been ramping up their cloud efforts only in the past two-three years, Amazon has been at it since 2006, and has been on a path of explosive growth. 

Whilst it was ridiculed for starting a side-business that had just about no connection with its eCommerce business, Amazon managed to cultivate a worldwide data-center network that now serves over 1 million users and is on the path towards generating nearly $10 billion in annual sales.

Amazon’s cloud division is one of its most profitable divisions, generating around $687 million in profit every quarter, working out to nearly $2.7 billion profit annually. Many of Amazon’s other divisions are losing money, so Amazon Web Services is a bright spot for Amazon.

Amazon Web Sevices is renowned industry-wide for bringing quality cloud computing that’s affordable and reliable, and heavy weights like Netflix use Amazon’s data-center network to power their services.

Not only is the division itself growing fast, being bigger than Amazon at this point in its lifecycle, it is also expanding fast, adding more than 700 features in 2015 alone.

Amazon has made many bets in its lifecycle, and some had paid off, while others flopped. For instance, the Fire Phone, into which Amazon poured millions didn’t sell well at all. But Amazon Web Services was the right bet for Amazon, and with the increasing popularity of cloud-computing, there’s no way but up for Amazon’s cloud division. Whilst, competitors like Google are expanding fast, for now Amazon doesn’t have anything to worry about, because the years it spent cultivating a data center network have paid off: Amazon operates the largest data-center network compared to its competitors by a large margin.

What do you think? Can Amazon Web Services continue this explosive growth?


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