Amazon Web Services CEO Andy Jassy Speaks at WSJDLive Global Technology Conference in Laguna Beach, California, October 25, 2016
Patrick T. Fallon | Bloomberg | Getty Images
Amazon’s cloud computing industry reported 28% revenue growth in the fourth quarter, which was less than analysts’ expectations. According to Amazon, Andy Jassy, who manages the cloud division, succeeded Jeff Bezos as CEO of Amazon in the third quarter of this year.
Amazon Web Services remains the market leader in cloud computing and storage that companies, governments and schools use to run websites and applications. While Microsoft and Google grew faster in the fourth quarter, they are still far behind Amazon in serving businesses that load their data fast.
AWS revenue rose to $ 12.7 billion from $ 9.95 billion a year earlier, below the $ 12.83 billion consensus estimate among analysts surveyed by FactSet. AWS’s revenue represents 10% of Amazon’s total sales.
AWS has continued to make a big chunk of Amazon’s profits. Operating revenue rose 37% from a year earlier to $ 3.56 billion, but behind the $ 3.75 billion FactSet consensus estimate. This means 52% of the company’s operating income can be attributed to AWS, compared to about two-thirds in the same period a year ago.
In the fourth quarter, AWS said it would enable customers to use two of its software container management services in local centers, rather than exclusively in AWS facilities. It also introduced new services, including one for adding maps to applications and another for using Apple’s MacOS remote operating system.
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