Amazon Web Services (AWS) reported third-quarter revenue growth of 27.5%, the slowest year-over-year increase since the company began reporting separate financials in 2014.
The cloud giant’s revenue for the quarter was $20.5 billion, while AWS’s operating income was $5.4 billion, up year-on-year from $4.9 billion in the quarter. 3 year 2021.
Despite cooling growth, AWS’s performance still outstripped the tech giant’s growth at large, with the company posting Q3 2022 revenue of $127.1 billion, up 15% from the previous quarter. same period last year.
Why the slowdown?
In a call with analysts reported by Register (opens in a new tab)Brian Olsavsky, Amazon’s CFO, attributed the slowdown to “ongoing macroeconomic uncertainties” that have left “AWS customers focused on controlling rising costs”.
Soaring energy costs were also highlighted as an issue AWS was struggling with on an analyst call, with Olsavsky saying they were “physically higher… more than 2x in the last few days… last year.”
Regardless of its recent results, AWS still controls a large portion of the cloud computing pie.
Amazon Web Services (AWS) controls 33% the entire cloud services market (opens in a new tab) in the first quarter of 2022, according to Statistica.
What is the next AWS?
Despite generating huge profits, the company still has many avenues for growth.
AWS recently started offers EC2 instances based on its own in-house Gravition family of chipsuses licensed ARM technology instead of the Nvidia or AMD chips it typically relies on.
AWS is a company could soon have a much larger footprint in the UKin 2022 AWS is actively hiring for technology-focused roles in Edinburgh and Cambridge, in addition to corporate and warehouse roles in London and Manchester.