Earnings: Amazon Dodges AWS Cloud Revenue Questions

Earnings: Amazon Dodges AWS Cloud Revenue Questions

Although Amazon (AMZN) announced a surprise Q2 loss, executives remain upbeat about Amazon Web Services (AWS). But how much can cloud computing boost Amazon? Here's a best guess.

Amazon (AMZN) announced a surprise Q2 2013 loss today but it sounds like the Amazon Web Services cloud business continues to grow rapidly. How rapidly? The online retailer danced around that question this evening during an earnings call, but all the clues indicate that Amazon ranks among the Top 5 Cloud Services Providers in the world. Here's why.

Amazon quarterly revenues jumped 22 percent to $15.7 billion but the company lost $7 million vs a $7 million profit in Q2 last year.

During a July 25 earnings call with Wall Street analysts, Amazon never mentioned the term "cloud computing" -- not even once. But Amazon Web Services came up eight times -- mostly because analysts kept asking about that portion of the business.

AWS Cloud Questions

A Morgan Stanley analyst asked when Amazon would start talking more about the AWS re:Invent conference and cloud summits during earnings calls. 

Amazon CFO Thomas J. Szkutak's response: "In terms of AWS, the business is growing very, very strongly. We’ve got a great team that’s innovating on behalf of customers, launching the services, becoming more productive, which allows us to be able to lower prices. We’ve had many price reductions since we started with AWS and we share that very visibly and so we’re excited about that business. And even though we were off to a very good start, it’s a very big opportunity and we continue to invest in that business and we’re very excited to do it. We think its great long-term opportunity and we’ve great team working on it."

Then, a CITI analyst asked about potential AWS expansion internationally. 

Szkutak's reply: "In terms of AWS, the business is expanding, and its incredible opportunity globally. We recognize that, the team recognizes that. And we’ll continue to work on that on behalf of customers."


Read between the lines and Amazon isn't willing to say too much about current or future AWS cloud revenues. But don't worry, Talkin' Cloud has you covered. Our third-annual Top 100 Cloud Services Provider report, coming July 30, will reveal that Amazon ranks among the top 5 CSPs worldwide. 

Where exactly does Amazon rank and what is the company doing right with channel partners? Check out our report on July 30.

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