Amazon Web Services (AWS) (opens in new tab) clocked a 32% year-on-year growth in Q1 2021 helping parent company Amazon record a 44% increase in quarterly revenue.
Amazon is the latest tech giant that has managed to beat earning estimates for the first quarter of 2021 due to a boost in its cloud computing (opens in new tab) business.
Thanks to record Azure (opens in new tab) sales, Microsoft clocked in over $40 billion (opens in new tab) in sales for the second straight quarter. Similarly, Internet giant Google also recorded (opens in new tab) a boost in its quarterly revenues thanks to the pandemic-induced move to the cloud.
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The growth of AWS beat industry estimates and outpaced the 28% growth recorded in the previous quarter.
“We have firm confidence that we offer a lot of advantages to AWS customers, from functionality to a vibrant and robust partner ecosystem,” said Brian Olsavsky, Amazon’s finance chief, on a conference call with analysts.
One of the earliest cloud computing players, the AWS division is one of Amazon’s most successful subsidiaries and is considered by analysts to be Amazon’s most reliable source of income.
The company has recently revealed (opens in new tab) how it has worked closely with Walt Disney, since a year before the launch of its Disney+ (opens in new tab) video streaming service (opens in new tab), which banks on its cloud infrastructure to serve millions of customers across the world.
The AWS unit delivered $13.50 billion in Q1 2021 revenue, which makes up for 12% of Amazon’s total quarterly revenue.
This year will see the head of AWS, Andy Jassy, replace Jeff Bezos (opens in new tab) as Amazon’s CEO, while former AWS executive Adam Selipsky would come back (opens in new tab) to the e-commerce (opens in new tab) giant to run AWS.
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Via CNBC (opens in new tab)