Amazon Web Services revenue grows 37% to $8.38 bn in Q2

Amazon Web Services (AWS) reported 37 percent growth in its revenue from cloud business to $8.38 billion during the second quarter of 2019.
AWS event for CIOs

Amazon Web Services, which provides computing and storage, had achieved 41 percent growth in the previous quarter.

AWS is the leader in the global cloud market as compared with Google, IBM, Microsoft, Oracle and Alibaba.

Microsoft’s Azure Cloud business is growing faster and picking up ground as the No. 2 player globally. Microsoft reported 64 percent revenue growth in Azure sales.

AWS generated $2.12 billion in operating income in the quarter, up from $1.64 billion a year earlier.

CNBC earlier reported the following Cloud deals.

Communications app provider Slack said it is committed to spending at least $250 million on AWS over the course of five years.

Ride-hailing company Lyft said in its prospectus that it’s committed to spending at least $300 million on AWS over three years — from the beginning of 2019 through 2021.

Pinterest said it will spend at least $750 million on AWS over the course of a six-year period that ends in July 2023.

“AWS has benefited from a first-mover advantage in the cloud market and has sustained growth at scale over the last two years,” KeyBanc Capital Markets analysts led by Edward Yruma wrote in a note to clients on Monday.

AWS revenue came accounted for 13 percent of Amazon’s total revenue. Of Amazon’s total $3.1 billion in operating income, 52 percent came from AWS.