Amazon Web Services (Aws) reported third-quarter revenue growth of 27.5%, the slowest year-over-year rise since the company began reporting its finances separately in 2014.
Giant cloud revenue for the quarter was $20.5 billion, while AWS operating income was $5.4 billion, up year-over-year from $4.9 billion in Q3 2021.
Despite cooling growth, AWS still outperformed the broader tech giant, which reported $127.1 billion in revenue in the third quarter of 2022, an increase of 15% year over year.
Why the slowdown?
In a call with analysts he reported that record (Opens in a new tab)Brian Olsavsky, Amazon’s chief financial officer, attributed the slowdown to “ongoing macroeconomic uncertainty” that “saw a rise in AWS customers focused on cost control.”
The skyrocketing energy costs were also highlighted as an issue that AWS is struggling to resolve on an analyst call, with Olsavsky saying these are “materially higher… more than doubling over the past two years.”
Regardless of its recent findings, AWS still controls a massive portion of the cloud computing pie.
Amazon Web Services (AWS) controls 33% of The entire cloud services market (Opens in a new tab) In the first quarter of 2022, according to statistics.
What’s next for AWS?
Despite already making huge profits, the company still has multiple avenues for growth.
AWS recently started Introducing EC2 instances based on its own line of DIY Gravitation chipswhich uses licensed ARM technology rather than the Nvidia or AMD chips it traditionally relies on.
AWS is a company It could make a bigger footprint in the UK soonIn 2022, AWS has been actively recruiting technology-focused roles in Edinburgh and Cambridge, as well as corporate and warehouse roles in London and Manchester.