Amazon AWS Biggest Revenue Driver Into Macro Recession

  • Amazon Web Services has been Amazon.Com, Inc (NASDAQ: AMZN) the most important growth engine of the past decade, taking business from a number of The most prominent technology supplier worldwide.

  • As recession fears loom, companies are trying to cut costs and stay lean. Cloud computing costs are an area where corporations are tightening budgets, CNBC report.

  • As the Fed continued to raise interest rates to address rising prices, it led to a recession by consumers and businesses.

  • David Brown, vice president of AWS, said Amazon is aware of the macro challenges, and as a result, AWS employees are reaching out to customers to see how they can help optimize spending.

  • “If you’re looking to tighten your belt, the cloud is the place to do it,” said AWS CEO Adam Selipsky in his keynote.

  • An investment firm that analyzed Andreessen Horowitz last year, however, painted a different picture. It shows that a company can cut computing costs in half or more by bringing workloads from the cloud back to on-premises data centers.

  • Amazon is also offering a cheaper alternative to Graviton compute based on energy saving based on arm replacement chip for standard Advanced Micro Devices, Inc (NASDAQ: AMD) and Intel Corporation (NASDAQ: INTC) processor.

  • “We see some customers tightening their belts right now,” Selipsky told CNBC. Expedia Corporation (NASDAQ: experience) CEO Peter Kern sees the cloud as an area where his company can reduce fixed costs.

  • The National Football League (NFL), which has used AWS to generate statistics and schedules, has also introduced cost-considerate plans. The NFL is renegotiating the terms of a multi-year cloud agreement with AWS.

  • In the third quarter, AWS recorded 27.5% growth, outpacing Amazon’s 15% increase. AWS generated $5.4 billion in operating income, which is more than 100% profit of parent company.

  • Price action: AMZN stock closed down 1.43% at $94.13 on Friday.

  • Photo by Tony Webster via Flickr

See more from Benzinga

Don’t miss real-time alerts on your stocks – join Benzinga Pro free! Try the tool that helps you invest smarter, faster and more efficiently.

© 2022 Benzinga does not provide investment advice. Copyright Registered.


News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button