AWS growth declines slightly in Q2, but still sees revenue climb

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Amazon Web Services (AWS) is the latest firm to reveal its Q2 2019 report, revealing how it performed over the three-month period. Like one of its key competitors, Microsoft Azure, AWS saw its cloud earnings growth slip slightly, with it registering at 37 percent this year compared to 49 percent in 2018.

While the growth saw a decline, the total revenue did increase as the cloud company reported a jump in revenue to $8.38 billion. As TechCrunch notes, that places the firm’s run rate at more than $33 billion, which is no doubt good news for those at Amazon. This as AWS makes up 13 percent of the larger organisation’s entire revenue.

It’s dominating the cloud marketplace, with it accounting for an estimated 33 percent, as closest rival Azure sits at roughly 16 percent.

With South African organisations now weighing up moves to the cloud in coming months, the recent success of AWS will likely prompt some to wait until the company’s local data centres land in the country next year, rather than opt for Azure’s options, which are currently up and running.

As for the aforementioned drops in growth, for both AWS and Microsoft, they can easily be attributed to the fact that it’s difficult to maintain such a high growth rate considering how much of the market is already with each vendor.

That said it should be interesting to see how the forthcoming South African data centres affect growth numbers, especially as it potentially opens up more opportunities for the firm throughout the rest of the African continent.

Either way it looks like AWS will remain one of Amazon’s most coveted business divisions.

Robin-Leigh Chetty

Robin-Leigh Chetty

When he's not reviewing the latest smartphones, Robin-Leigh is writing about everything tech-related from IoT and smart cities, to 5G and cloud computing. He's also a keen photographer and dabbles in console games.