Amazon’s cloud business roars
I guess everyone knows the cloud computing is the future. The internet of things is growing. World is getting more connected day by day. But how much profitable cloud computing technologies are for companies? For the first time in history, Amazon released financial data of its cloud computing operations. The Amazon web services as it is commercially called is not only profitable but over profitable as per the data. The shocking development has shocked experts on the Wall Street. In 2006, Amazon kick started its cloud service wing after its online shopping empire became well settled player. The computers at the Amazon were so good that company started letting others to use those computers and started charging for the same.
The model almost worked like sharing the main frame computers in universities 50 years ago. The results are mind blowing. During past one year the Amazon Web Service made $5.16 billion revenue. Latest quarter shows the growth of 49 percent along with earnings of $680 million. The operating budget for the cloud division is 13 percent as per the data.
This is contradictory to the expert opinion before Tuesday. Many of them imagined the cloud services as unprofitable along with negative growth prospects. They also believed that it would have 20 percent negative operating profit margin. Due to this Amazon rocked the share market. The share value grew up to 14 percent. The Amazon released its data regarding profits as the investors were moving towards more profitable stocks like Apple.