Amazon Web Services (AWS) reports 27.5% revenue growth in the third quarter , was the lowest year-over-year rise since the company began reporting its financials separately in 2014.
The cloud giant’s revenue was $20.5 billion in the quarter, while AWS’ operating income was $5.4 billion, up from $4.9 billion in the third quarter of 2021. Despite slowing growth, AWS’ performance still outpaced the tech giant’s growth on a broader scale, which reported Q3 2022 Revenue was $127.1 billion, up 15% year over year.
Why does it slow down?
in a conference call with analysts Report) Register
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, Amazon CFO Brian Olsavsky attributed the slowdown to “persistent macroeconomic uncertainty” Sexuality”, “Seeing an Increase in AWS Customers Focused on Controlling Costs”.
Skyrocketing energy costs were also highlighted on analyst calls as an issue AWS is grappling with, with Olsavsky saying those costs are “significantly higher… …has grown more than 2x over the past few years.”
Regardless of recent results, AWS still controls a big chunk of the cloud computing space.
Amazon Web Services (AWS) controls 33% of the entire cloud services market
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in the first quarter of 2022, according to Statistica. What’s next for AWS?
Despite already making huge profits, the company still has multiple avenues for growth.
AWS recently started offering EC2 instances based on its own line of manufactured Gravition chips that use licensed ARM technology, not the chips Nvidia or AMD it has traditionally relied on.
AWS is a company that will soon have a larger footprint in the UK, AWS has been actively recruiting with a technology focus in Edinburgh and Cambridge in 2022 jobs, in addition to corporate and warehouse jobs in London and Manchester.
Interested in exploring alternatives to AWS? Check out our guide to the best cloud storage
Will McCurdy has been writing technical articles for over five years. He has a wide range of expertise , including cybersecurity, fintech, cryptocurrency, blockchain, cloud computing, payments, artificial intelligence, retail tech and venture capital. He has previously written for AltFi, FStech, Retail Systems, and National Technology News, is an experienced podcast and webinar host, and an avid feature writer.