Amazon said its market-leading cloud business – Amazon Web Services (AWS) — grew revenue 32 percent to $13.50 billion in the first quarter of 2021.
The revenue of AWS unit was 12 percent of Amazon’s total revenue.
AWS has contributed $4.16 billion in operating income in the first quarter and nearly 47 percent of Amazon’s overall operating income. The operating margin widened to 30.8 percent from 28 percent in the prior quarter.
“We have firm confidence that we offer a lot of advantages to AWS customers, from functionality to a vibrant and robust partner ecosystem,” Brian Olsavsky, Amazon’s finance chief, said on a conference call with analysts.
Amazon earlier said that the head of AWS, Andy Jassy, would replace Jeff Bezos as Amazon’s CEO, and that former AWS executive Adam Selipsky would leave his position as head of Salesforce’s Tableau business to run AWS.
“In just 15 years, AWS has become a $54 billion annual sales run rate business competing against the world’s largest technology companies, and its growth is accelerating,” CEO Jeff Bezos said.
Amazon announced a deal for Dish Network to build its 5G network on AWS last week.
Research firm Canalys said Amazon Web Services (AWS) was the leading cloud service provider in Q1 2021, growing 32 percent on an annual basis to account for 32 percent of total spend.
AWS recently announced CloudFront edge locations in Croatia and Indonesia and extended its Wavelength Zones for 5G networks to Japan and across the United States. It launched its new EX2 X2gd instances based on the AWS-designed Graviton2 CPU for memory-intensive workloads and improved price-performance.
“Amazon and Microsoft have earned their leadership positions as they focus aggressively on growing their cloud services, quarter after quarter, year after year. They continue to invest billions of dollars every quarter in expanding their global data center footprint, while at the same time enhancing their cloud service portfolios,” said John Dinsdale, Chief Analyst at Synergy Research Group.