AWS revenue passes $10bn for the first time

Amazon's cloud computing continues to grow despite global pandemic

Amazon Web Services surpassed $10 billion for 2020 first-quarter revenues, putting the tech giant on a run rate of more than $40 billion.

The overall net income of Amazon was down by $1 billion compared to last year, according to its earnings report, but the company's cloud computing arm contributed 13.5% to the overall revenues. 

Analysts surveyed by FactSet had expected the cloud giant to hit $10.33 billion for the first quarter of 2020, according to CNBC, but it fell just short of that at $10.22 billion.

According to analysts at Goldman Sachs, the sudden global switch to remote business operations has helped the company avoid big financial hits due to the coronavirus.

"Our partner checks continue to reflect the relative strength in the AWS platform, as incremental demand from customers to accelerate their migration into the cloud, provide full virtual-desktop coverage (AWS WorkSpaces), and other work from home and business continuity needs, seem to have more than offset the disruption from longer sales cycles and delays in planned migrations as IT priorities have shifted in the current environment," the analysts wrote, according to CNBC.

Since it's inception in 2006, AWS has become a powerful business of its own, with a growth rate of 33%, and despite slowing gradually, it's still way out in front in the cloud market.

Related Resource

Technology is keeping the economy's lights on

Sample our exclusive Business Briefing content

Download now

Its closest challenger is Microsoft, which has shown quicker growth over the last year or so. On Thursday the company reported 59% growth for Azure, beating Wall Street estimates with services like Teams and Xbox seeing surges in users. 

Despite this, AWS is still ahead, largely due to it being the first big player in the market. Its first-quarter revenues for the last six years highlights how quickly it has grown, according to a tweet from Bloomberg's Jon Ehrlichman, with just $1.1 billion recorded in 2014.

Featured Resources

The ultimate law enforcement agency guide to going mobile

Best practices for implementing a mobile device program

Free download

The business value of Red Hat OpenShift

Platform cost savings, ROI, and the challenges and opportunities of Red Hat OpenShift

Free download

Managing security and risk across the IT supply chain: A practical approach

Best practices for IT supply chain security

Free download

Digital remote monitoring and dispatch services’ impact on edge computing and data centres

Seven trends redefining remote monitoring and field service dispatch service requirements

Free download

Most Popular

Best Linux distros 2021
operating systems

Best Linux distros 2021

11 Oct 2021
HPE wins networking contract with Birmingham 2022 Commonwealth Games
Network & Internet

HPE wins networking contract with Birmingham 2022 Commonwealth Games

15 Oct 2021
What is cyber warfare?

What is cyber warfare?

15 Oct 2021