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Amazon’s AWS is the core of the company’s public cloud. Whether it is the instant imagery needed for a search engine’s algorithm, or a data store for Microsoft’s new gaming engine, or a backend for MP3s, Amazon’s cloud is a data center’s best friend.
It can also be viewed as a competitor to the likes of Google, Microsoft, Facebook and Apple. Unfortunately, as much as AWS does generate revenue, it doesn’t actually break-even. Over its seven-year life-cycle, Amazon’s AWS has never actually recouped its $2 billion in capital invested. Today, AWS is at $13 billion in market cap, which is good, but still a far cry from the $14 billion valuation some expect to see.
Still, the pay-off for all the time, effort, and money is huge. Amazon is not only among the most valuable companies in the world, but it is now also one of the largest cloud providers in the world.
And that is where today’s quarterly revenue comes in. It’s not just AWS that is doing well, but Amazon is doing better than ever. More customers, more opportunities to sell your product, more money, more time: all good things. In fact, AWS revenue over the last quarter of 2013 alone, grew by 29%, which just shows how the company has been growing in such huge numbers.
It’s not just AWS, though, as the company’s biggest margin center is certainly the web. While AWS is the company’s core, the real money-maker is the web. For this quarter, Amazon Web Services (AWS) is responsible for $1.9 billion of Amazon’s revenues. This is where Amazon focuses its efforts, as while other efforts may earn more money per customer, the web doesn’t yield as much revenue.
This quarter, the company’s biggest market continues to be Asia-Pacific, leading the way in both number of AWS customers and AWS revenue. The company now has more than 100,000 customers. It also has more than 350,000 developers, and between the developers and their customers, Amazon generated $1.6 billion in revenue. In other words, the AWS business model appears to be working.
There are certainly quite