Amazon Finally Discloses Cloud Services Sales, Showing 49% Jump

#1

Post by T-A » Thu, Apr 23, 2015, 9:14 PM UTC

Amazon Finally Discloses Cloud Services Sales, Showing 49% Jump
bloomberg.com

Re: Amazon Finally Discloses Cloud Services Sales, Showing 49% Jump

#2

Post by pokoleo » Thu, Apr 23, 2015, 9:44 PM UTC

Judging by the size of the AWS bill that companies pay without a peep, I don't think anyone here is incredibly surprised.

Re: Amazon Finally Discloses Cloud Services Sales, Showing 49% Jump

#3

Post by colinbartlett » Thu, Apr 23, 2015, 9:46 PM UTC

Is there any chance that Amazon might spin off AWS to a separate company? Or would that be suicide to the stock price of their retail business?

Re: Amazon Finally Discloses Cloud Services Sales, Showing 49% Jump

#4

Post by abetaha » Thu, Apr 23, 2015, 9:50 PM UTC

colinbartlett wrote: post #3

Is there any chance that Amazon might spin off AWS to a separate company? Or would that be suicide to the stock price of their retail business?

The WSJ article seems to hint at that:

> The AWS figures allow investors to value what some think could be a spinoff prospect.

http://www.wsj.com/articles/amazon-swings-to-loss-despite-ju...

Re: Amazon Finally Discloses Cloud Services Sales, Showing 49% Jump

#5

Post by gshakir » Thu, Apr 23, 2015, 9:54 PM UTC

I don't think the growth will accelerate as the article claims as the barrier to entry is becoming less and less each day. It should be interesting to see how it plays out.

Re: Amazon Finally Discloses Cloud Services Sales, Showing 49% Jump

#6

Post by rifung » Thu, Apr 23, 2015, 9:54 PM UTC

"Since its inception, Amazon has refined and expanded AWS while competitors including Microsoft and Google have tried to replicate its success with similar projects. Those companies have only recently started to deliver basic services on par with Amazon’s."

Is this really true? I know that AWS offers many more services than competitors currently, but for the services for which there is a competing product, is the AWS offering really that much better?

Re: Amazon Finally Discloses Cloud Services Sales, Showing 49% Jump

#7

Post by icpmacdo » Thu, Apr 23, 2015, 9:57 PM UTC

colinbartlett wrote: post #3

Is there any chance that Amazon might spin off AWS to a separate company? Or would that be suicide to the stock price of their retail business?

What is the advantage to spinning it off to its own company?

Re: Amazon Finally Discloses Cloud Services Sales, Showing 49% Jump

#8

Post by hyperliner » Thu, Apr 23, 2015, 9:58 PM UTC

gshakir wrote: post #5

I don't think the growth will accelerate as the article claims as the barrier to entry is becoming less and less each day. It should be interesting to see how it plays out.

There are HUGE barriers to entry. What is the reason behind the "barrier to entry is becoming less and less each day"?

Re: Amazon Finally Discloses Cloud Services Sales, Showing 49% Jump

#9

Post by mblevin » Thu, Apr 23, 2015, 9:58 PM UTC

TL;DR on AWS

- $1.57b in revenue in Q12015 on $22.72B total ($5B annualized for AWS)

- $265m in operating income (net loss for Amazon as a whole was $57m)

Looks like revenue was slightly lower but operating income quite a bit higher than most Wall Street estimates.

Re: Amazon Finally Discloses Cloud Services Sales, Showing 49% Jump

#10

Post by fweespeech » Thu, Apr 23, 2015, 9:58 PM UTC

rifung wrote: post #6

"Since its inception, Amazon has refined and expanded AWS while competitors including Microsoft and Google have tried to replicate its success with similar projects. Those companies have only recently started to deliver basic services on par with Amazon’s." Is this really true? I know that AWS offers many more services than competitors currently, but for the services for which there is a competing product, is the AWS…

> is the AWS offering really that much better?

Depends on your needs, tbh, traditional hosting is a better fit for mine. I can automate buying and provisioning bare metal servers already. I don't need AWS for that.