AWS Sales Surge Past $40 Billion, Fueling Amazon's Future Growth
Amazon's cloud business, Amazon Web Services (AWS), is a significant contributor to the company's revenue. In its second-quarter update, AWS posted a blowout quarter with sales climbing by 37% year over year to $42.2 billion.
In an interview, Amazon CEO Andy Jassy praised AWS, saying it would be ranked 24th on the Fortune 500 list if it were a standalone company.
AWS has its peers beat in terms of breadth of capabilities and ability to handle various workloads. The company still sees vast opportunities in the industry, with 85% of IT spending occurring on-premises despite the advantages of cloud computing.
As more of this spending moves to the cloud, AWS is expected to continue growing at a good clip, lifting Amazon's margins and resulting in a stronger, more profitable business.