Cloud leader Amazon Web Services revenue surges 37% to $14.8 bn in Q2

Amazon Web Services (AWS) increased its revenue 37 percent at $14.81 billion in the second quarter of 2021.
Amazon web services
AWS was the leading cloud service provider in Q2 2021 accounting for 31 percent of total spend after growing 37 percent on an annual basis, according to Canalys.

Cloud infrastructure services spending increased 36 percent to $47 billion in Q2 2021, as workload migration and cloud native application development accelerated, the latest Canalys report said on Friday.

Synergy Research Group said Q2 enterprise spending on cloud infrastructure services reached $42 billion, having increased by $2.7 billion from the previous quarter and up 39 percent from the second quarter of 2020.

“This market continues to be a runaway success story for Amazon, Microsoft, Google and some other cloud providers,” said John Dinsdale, a Chief Analyst at Synergy Research Group.

Amazon Web Services (AWS) is now a $59 billion annualised run rate business, up from $43 billion at this time last year, its parent company Amazon said.

Under Andy Jassy, who is now Amazon CEO, the revenue growth accelerated across a broad range of customers.

“We see strong growth in enterprises, governments, educational and research institutions and our start-up and digital native customers,” said Brian T Olsavsky, Senior Vice President and Chief Financial Officer at Amazon.

“AWS added more revenue quarter-over-quarter and year-over-year than any quarter in our history,” Olsavsky told analysts during the company’s Q2 earnings call.

AWS customers recognise that the move to the cloud is very positive for their businesses in the medium and long-term. Disruptive economic events like COVID have caused many people to step back and think about how they want to change strategically, said Olsavsky.

AWS plans to open infrastructure regions in the United Arab Emirates (UAE) in the first half of 2022 and Israel in the first half of 2023.

Globally, AWS has 81 Availability Zones across 25 geographic Regions, with plans to launch 21 more Availability Zones and seven more AWS Regions.