Amazon Web Services (AWS) is reported to have posted $4.1 billion revenue in Q2 2017.
AWS’ 42 percent revenue growth was supported by the fact that usage of the largest AWS services is growing at a faster pace than revenue, and accelerating, which prompts global capacity expansion.
This geographic expansion hinders AWS’ operating margin, which dropped 260 basis points from Q2 2016 to 22.3 percent in the quarter.
Despite the margin pressure, AWS will remain a critical component to Amazon’s performance, driving both revenue growth and ongoing profitability.
Earlier, AWS announced that Ancestry, the global leader in family history and consumer genomics; Hightail, a virtual workspace for creative collaboration and file sharing; and California Polytechnic State University are going on AWS.
Other enterprise customers that have recently chosen AWS to run significant production workloads include Discovery Communications, Morningstar, BP, and Zillow Group.
American Heart Association, Freshdesk, HubSpot, Aylesbury Vale District Council, Capital One, OhioHealth, NASA, Liberty Mutual Insurance, Vonage, and Kelley Blue Book are using natural language chat bots via Amazon Lex.
Washington Post, Duolingo, BeeLiked, GoAnimate, WizKids, Royal National Institute for the Blind, Y-cam, Mapbox, iTranslate, InHealthcare, Storybulbs, Aculab, and Aloud are enhancing customer engagement with Amazon Polly’s text-to-speech capabilities.
C-SPAN, Motorola Solutions, Openinfluence, Go Girl, Bynder, HYPR, TheTake, Witlee, RealTimes, and Washington County Sheriff’s Office are using Amazon Rekognition.
AWS announced that it will open a new infrastructure region in Hong Kong and a second GovCloud region in the U.S in 2018. AWS operates 44 Availability Zones across 16 infrastructure regions worldwide, with announced plans for another 14 Availability Zones across five AWS Regions.
Amazon now has more than 10 large-scale solar installations on fulfillment center rooftops, and remains on track to install 50 or more by 2020.