AWS sees revenues climb 39% as it continues market dominance

Amazon’s cloud division revenues beat analysts’ expectations in the third quarter, totalling $16.11 billion, an increase of nearly 39 per cent year-on-year.

Experts polled bye StreetAccount had initially expected an increase of $15.48 billion, after the company watched its revenue climb 37 per cent last financial year.

AWS is the market leader in the growing cloud infrastructure space, maintaining a 41 per cent share in 2020, according to Gartner.

Not only does the service provide the ecommerce giant with revenue diversity, but it makes up a healthy part of the company’s annual earnings at around 15 per cent.

“On AWS, the acceleration, I would say that what we’re seeing is, again a lot of customers accelerated their journey to the cloud based on the pandemic,” Amazon finance chief Brian Olsavsky said on a conference call with analysts.

READ MORE: Amazon is falling behind on plans to open hundreds of Fresh stores

AWS recently announced a deal with the UK’s three spy agencies to host classified intelligence in partnership that is aimed at boosting the use of AI in espionage.

The cloud system will be used by GCHQ, the UK’s signals intelligence service as well as MI5 and MI6 and other Ministry of Defence departments (MoD) during joint operations.

The deal was met by sceptics, with the UK’s Ex National Cyber Security Centre head Ciaran Martin, who stepped down from his role last year, saying that the contract would help the security services “get information from huge amounts of data in minutes, rather than in weeks and months,” he told the Financial Times.

“This is yet another worrying public-private partnership, agreed in secret,” he said.

“If this contract goes through, Amazon will be positioned as the go-to cloud provider for the world’s intelligence agencies. Amazon has to answer for itself which countries’ security services it would be prepared to work for.”

In November 2020, AWS went down taking a number of major websites and thousands of connected devices with it.

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