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Make no mistake about it, Amazon's Web Services (AWS) cloud business is growing — fast.
Amazon reported its third quarter fiscal 2015 financial results on October 22, once again showing sky-high growth for its cloud business. Overall Amazon reported net sales of $25.4 billion for a 23 percent year-over-year gain.
Amazon's cloud business reported revenue of $2.1 billion for a 78 percent year-over-year gain. Amazon first began to publicly detail its cloud fortunes in April of this year, during the company's first quarter. Amazon's first quarter cloud revenue was reported at $1.57 billion for a 49 percent year-over-year gain. The upward trend continued in the second quarter with AWS reporting net sales of $1.8 billion, for an 81 percent year-over-year gain.
"We're continuing to see great acceleration in the pace of innovation," Brian Olsavsky, Senior Vice President and Chief Financial Officer of Amazon, said about AWS during his company's third quarter earnings call.
Olsavsky noted that Amazon has launched 530 new significant features this year in AWS, which is more than what the company did in all of 2014. Additionally he noted that Amazon continues to cut prices, with eight price reductions so far in 2015.
"We like that the customers are really responding, they like the speed and agility that AWS provides them and they like the new features that we launched, many of which also enable them to lower their cost of infrastructure," Olsavsky said.
Among the new features recently launched by AWS is Amazon Aurora, which is a high-end data base option as well as the QuickSight business analytics services.
While there is growth in the cloud, there is also risk. During the call, Amazon was asked about the impact of Safe Harbor provisions which have been struck down in the European Union, making it more difficult to move data across borders for many types of organizations. Amazon, however, isn't worried.
"With our EU-approved AWS data protection agreement and model clauses we have in place, AWS customers can keep running their global operations using AWS and be in compliance with the law," Phil Hardin Director, Investor Relations at Amazon said.
Sean Michael Kerner is a senior editor at Datamation and InternetNews.com. Follow him on Twitter @TechJournalist
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