Amazon Web Services (AWS), the cloud computing arm of Amazon, is on track to hit a staggering $100 billion in sales in 2024. The announcement was made by AWS CEO Adam Selipsky on the Opening Bid podcast. This comes after AWS reached the $100 billion annualized revenue run rate milestone, a feat not many tech companies have achieved.
The surge in AWS sales is driven by the increasing demand for generative AI services and the ongoing shift of workloads to the cloud. In the first quarter, AWS sales rose 17% year over year to $25 billion, and operating profits nearly doubled to $9.4 billion, accounting for about 62% of Amazon’s Q1 operating profits.
Despite the impressive figures, Selipsky believes that the growth of AWS is just beginning. With 85% of companies still storing their data on-premise, the potential for AWS is immense. Selipsky remains optimistic about the business outlook for AWS and sees no upper limit to its growth.
However, he also acknowledges that AWS’s success is not guaranteed and will depend on how well it serves its customers. He emphasizes the importance of keeping customers happy, a part of the “Day One” culture instilled by Amazon’s founder Jeff Bezos.
Analysts share Selipsky’s optimism, with Evercore ISI tech analyst Mark Mahaney noting that the drivers of AWS are strong and sustainable. He also highlighted that AWS dollar revenue growth surpassed that of Microsoft Azure for the first time since the third quarter of 2022, changing the cloud industry leadership narrative.
Read more at: finance.yahoo.com