Feeds

Amazon's cloud revenues rocket up as company posts loss

Revenue soars in mysterious "other" category

HP ProLiant Gen8: Integrated lifecycle automation

Amazon's cloud division has contributed to over $1.6 billion in revenue in the e-retailer's nebulous "Other" category this year, as Bezos & Co.'s cloud continues its vertiginous rise.

The "Other" category added $892m to Amazon's revenues in the second quarter of 2013, according to figures from the company's Q2 2013 earnings, demonstrating growth of almost $100m on the previous quarter.

Though Amazon does not break out earnings figures for its cloud division, it does stick it in a category whose other main inhabitant is advertising, which is predicted to bring in $835m for the entirety of 2013.

Given the fact "Other" is already at $1.6bn, it's realistic to project earnings for the division to come in at a couple of hundred million above $3bn for the year – at least. That still puts AWS as the major contributor to the category, and lines up with our prediction it could rake in as much as $2.25bn for the year.

Our own figures (below) show a pronounced growth in the segment in the past couple of years, lining up with a sustained and aggressive campaign by Amazon to implement enterprise features such as role isolation, data warehousing, and virtual private clouds within AWS.

AWS Q2 2013 Other Revenue

Amazon spent $855m on purchases of property and equipment in its most recent quarter, up $670m from the previous quarter. This figure reflects a combination of spending on distribution warehouses and IT gear, and suggests that the company is preparing for further growth in the division.

This lines up with the thoughts of the gold-plated beancounters at Morgan Stanley, who recently predicted that Amazon Web Services could bring in a cool $24bn a year for the company within a decade. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.