Feeds

Amazon mints a BILLION BUCKS from its cannibal cloud

Bezos & Co tower over competition in Q4 results

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.