Amazon Web Services (AWS) revenue grew 34 percent to $9.95 billion in the fourth quarter of 2019, Amazon said in a statement Thursday.
Revenue growth was down sequentially from 34.7 percent in the previous quarter.
Of the $3.88 billion in operating income that Amazon captured in the fourth quarter, $2.60 billion of it, or 67 percent, was attributable to AWS.
AWS continues to grow faster than Amazon’s North America and International business segments.
AWS represents 11 percent of Amazon’s total revenue. AWS serves as the company’s cash cow after years of dominance in the cloud market. AWS competes with Microsoft, Google Cloud, Alibaba and other companies.
Microsoft’s Azure cloud is the main competitor to AWS. Revenue growth for Microsoft’s Azure cloud accelerated sequentially in the fourth quarter, coming in at 62 percent, up from 59 percent in the prior quarter, though Microsoft doesn’t disclose Azure revenue in dollars.
Microsoft won a major cloud deal, worth up to $10 billion over a decade, from the U.S. Defense Department. Amazon is challenging the cloud deal in federal court.
Amazon announced at its annual AWS Reinvent conference in Las Vegas a tool for automatically reviewing source code, a service based on the Cassandra open-source database software, computing infrastructure for quickly handling demand from 5G devices and other new products.
AWS announced three Arm-based instances (M6g, C6g, R6g) powered by AWS’s Graviton processors, that deliver up to 40 percent better price and performance than current x86 processor-based instances. These new Arm-based instances are powered by the AWS Nitro System.
AWS announced the general availability of AWS Outposts, a fully-managed service that extends AWS infrastructure and services to virtually any data center, co-location space, or on-premises facility.
AWS announced AWS Wavelength, which enables developers to build applications that deliver single-digit millisecond latencies to mobile devices and users by deploying AWS compute and storage at the edge of the 5G network.
AWS announced a new innovative cost-saving warm storage tier for Amazon Elasticsearch Service called UltraWarm that makes it easier for customers to retain current and historical log data at up to one-tenth the current cost and is 80 percent less than the cost of warm-tier storage from other managed Elasticsearch offerings.