Posted by : Randy Cooper in (CDN)

Is Amazon’s Cloud Profitable?

amazonAmazon’s utility computing platform is gaining both customers and mindshare. But is Amazon Web Services making any money? We don’t have any data on this, as Amazon (AMZN) still isn’t providing any meaningful information about the performance and profitability of its cloud services. The company doesn’t itemize revenue from AWS, but lumps it into ”other” sales, a category that had year-to-year revenue growth of 41 percent. This leaves the impression that revenue from S3, EC2 and Amazon’s other utility services may be substantial. But it could also mean that another ”other” business had a big year.
As Amazon Web Services continues to grow, this question is bound to become more pressing, as noted by TechFlash and InformationWeek. Financial analysts are keen on more information. The first question in last week’s earnings conference call was about the web services unit, and CEO Jeff Bezos said only that there is a “significant and meaningful opportunity over time for enterprise level customers with our web services business.” (See this summary of the cloud-relevant section of the Q&A).


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