Amazon said revenue at its cloud unit rose 19% within the third quarter, narrowly missing analysts' estimates.
Amazon Web Services' revenue totaled $27.45 billion, based on a opinion On Thursday, Wall Street expected $27.52 billion, based on StreetAccount estimates. Year-over-year growth has accelerated for five consecutive quarters.
The artificial intelligence share of AWS is price billions of dollars in annual revenue, greater than doubling from last yr, Amazon CEO Andy Jassy, who previously led AWS, said in a call with analysts.
“I think we have more demand than we could meet if we had more capacity today,” Jassy said. “I think pretty much everyone has less capacity than they need these days, and it's really chips in particular that are the area where companies could use more supply.”
AWS leads the cloud infrastructure market ahead of Google and Microsoft and is a key source of profit for Amazon.
On Tuesday, Google Parent alphabet Google Cloud revenue, which incorporates each cloud applications and infrastructure, totaled $11.35 billion, up 35%. Microsoft said Wednesday that revenue from Azure and other cloud services rose 33%.
AWS reported operating profit of $10.45 billion, accounting for 60% of the parent company's profit. Analysts expected $9.15 billion.
The unit's operating margin was 38%, the most important for AWS since a minimum of 2014. Google Cloud reported an operating margin of 17%.
“We're taking a very measured approach to hiring,” Amazon CFO Brian Olsavsky said on the conference call.
During the quarter oracle said it should bring database services to AWS.
“If this is successful, we would like to find other parts of their application stack that could run well on AWS and help customers,” AWS CEO Matt Garman said in an interview with CNBC in September.
Also within the quarter, AWS announced plans to discontinue some services, including the code repository tool CodeCommit. Garman told TechCrunch that AWS “can’t invest in everything.”
REGARD: According to Databricks' Naveen Rao, Databricks generates greater than $1 billion in revenue from AWS
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