Feeds

Amazon mints a BILLION BUCKS from its cannibal cloud

Bezos & Co tower over competition in Q4 results

  • alert
  • submit to reddit

Combat fraud and increase customer satisfaction

Amazon's cloud division has brushed off competition from Google and Microsoft to report record revenue of $1.234bn, and grew its business abroad to historic highs as well.

Amazon took in $1.234bn in cash in its "other" revenue segment in the fourth quarter of 2013, the company announced on Thursday, up from $1.011bn in the previous quarter. $1.170bn came from North America, where Amazon operates its largest and longest-running data centers, and $64m from abroad as companies gave a large collective shrug to worries over US spying on cloud data.

Though Amazon does not break out cloud revenue directly, it does stick it in a mysterious category named "other" which also wraps in cash made from advertizing revenue and some other fringe products. A recent report – which El Reg dived into and verified – reckoned advertizing would slurp in $835m for the whole of 2013, so the year's "other" figures of $3.934bn likely represent a good $2.9bn in cloud revenue.

Incidentally, this comes in a shade above our own most recent prediction that Amazon would make $3.7bn in "other" revenue this year.

Amazoncloudrevq4

Amazon's cloud dominates the rentable compute and storage market

Though the few billion in revenue is a minnow compared to Amazon's overall revenues of nearly $75bn for the year, it is a valuable figure as it gives us an indication of how much cash Amazon is generating from as-a-service rentable computing. Remember – the bigger companies like Amazon get, the more money they hoover up that would otherwise be spent on upgrades to bit barns owned and operated by smaller companies, according to the Uptime Institute.

This compares with a claim by Microsoft that its Azure cloud wing was a billion-dollar business when measured on an annual basis, and Rackspace's most recent quarterly revenue of $108.4m for its public cloud. Google also operates its own anti-Amazon cloud products via Google App Engine and Google Compute Engine, but doesn't break out revenue in a meaningful format.

The results may also salve some concerns in the industry that revelations by Edward Snowden about US spying could have blunted the growth of cloud computing. Judging by Amazon, people are already committed to the cloud, and even punters abroad are spending more than ever given the international takings were a record $13m higher than previous quarters. ®

3 Big data security analytics techniques

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.