How Amazon Web Services achieved 55% revenue growth

Amazon Web Services technologyHosting technology company Amazon Web Services (AWS) has reported $3,536 million (+47 percent) revenue in Q4 2016 and $12,219 million (+55 percent) in 2016.

AWS has achieved the substantial increase in revenue by making significant investment in facilities globally, launching innovative web hosting products and adding top class enterprise clients.

AWS released 308 significant new services and features in the fourth quarter, bringing the total number of launches in 2016 to 1,017.

AWS recently announced that customers migrated more than 18,000 databases using the AWS Database Migration Service in 2016.

Technology Business Review, in its latest earnings comment on AWS, said the web hosting technology company delivered consistently strong revenue growth of 47 percent, reaching over $3.5 billion in Q4 2016 revenue.

“Despite consistent innovation and strength of Amazon’s retail and entertainment segments, AWS’ 1,017 new features and services in 2016 propelled the business to grow from 7.4 percent of 2015 corporate revenues to 9 percent in 2016, and enabled the company to maintain profitability influence as the consistent majority contributor to operating income,” said Meaghan McGrath, analyst, TBR.

AWS, which contributes 9 percent of the total revenue of e-commerce major Amazon, revealed the latest customer wins including Workday, Capital One, Matson, FINRA, McDonald and Enel.

Latest client wins

Workday selected AWS as its public cloud infrastructure provider for customer production workloads.

Capital One selected AWS as its cloud infrastructure provider.

Shipping carrier Matson has closed all of its data centers, completing a migration to AWS.

McDonald’s is transforming its digital-facing properties with AWS.

Financial Industry Regulatory Authority (FINRA) is utilizing AWS for its data analytics platform, which analyzes up to 75 billion market events daily.

Enel has moved more than 5,000 servers to AWS as it transforms its technology infrastructure on AWS.

AWS on expansion spree

AWS has opened 11 Availability Zones across five geographic regions in the U.S., Korea, India, and most recently, Canada and the U.K. AWS now operates 42 Availability Zones across 16 infrastructure regions. AWS plans to open an additional five Availability Zones in two regions (France and a second region in China).

AWS innovation

AWS announced three Artificial Intelligence (AI) services that make it easy for any developer to build apps that can understand natural language, turn text into speech, have conversations using voice or text, analyze images and recognize faces, objects, and scenes.

Amazon Lex, Amazon Polly, and Amazon Rekognition are based on the AI technology built by deep learning and machine learning experts across Amazon.

AWS also announced investment in MXNet, an open source distributed deep learning framework. AWS will contribute code and improve the MXNet developer experience to enable machine learning scientists to build deep learning models that can reduce the training time for their applications.

AWS announced Amazon Athena, a pay-as-you-go, interactive query service that makes it easy for customers to analyze data directly in Amazon Simple Storage Service (Amazon S3) using standard SQL. With a few clicks in the AWS Management Console, customers can point Amazon Athena at their data stored in Amazon S3 and begin using standard SQL to run queries and get results in seconds.

AWS announced AWS Greengrass and AWS Snowball Edge, hybrid services that help customers extend the power of the AWS Cloud to connected devices and other environments that exist beyond the network edge.

AWS announced AWS Snowmobile, an Exabyte-scale data transfer service that customers can use to move large amounts of data to AWS. Each Snowmobile is a 45-foot long ruggedized shipping container pulled by a semi-trailer truck that is capable of moving up to 100 PB of data to the AWS Cloud in a few weeks.

Industry analysts are predicting that AWS will sustain its double-digit growth in 2017, delivering $17 billion in annual revenue; and will do so by driving international uptake of expanded data center capacity, increased storage usage by large enterprises enabled by the new Snowmobile data transfer units.

Baburajan K

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