Amazon.com, Inc. (NASDAQ:AMZN) has proved to be a strong contender in cloud services and perhaps this might influence competitors such as Alphabet Inc (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT) to release their cloud sales data.
Amazon reported its quarterly earnings on Thursday, including the results of its cloud services. The company is the first among the major cloud players to announce its quarterly cloud results. This has raised questions as to whether Microsoft and Alphabet will soon join in the trend and in revealing the performance numbers of their cloud services. The two are the biggest competitors for Amazon but they did not reveal specific details about the performance details of their cloud services during their quarterly reports.
Amazon reports attractive cloud performance numbers
Amazon revealed in its quarterly report that it managed to secure $1.4 billion from its cloud computing service, Amazon Web Services. It marked a 42 percent improvement compared to the AWS sales achieved in the second quarter of 2016.
“That puts the division, Amazon Web Services, on track for $16 billion in revenue for this year,” stated Amazon CFO, Brian Olsavsky.
AWS operating income for the quarter was surprisingly higher than the operating income from the rest of the company’s businesses. This proves just how significant AWS has been and the massive scale that it has amassed. Meanwhile, Microsoft CEO Satya Nadella told investors that his company’s cloud service Microsoft Azure registered 97 percent growth in the fourth quarter. However, he did not go into details about how the 97 percent was achieved. This is vital considering that the company has numerous products and services operating within the cloud domain.
The same applies for Alphabet which did not reveal details about the performance of its cloud services. Cloud is already a huge market and it has a huge impact on the overall performance of the participating companies. Revealing cloud performance data would thus be significant for investors. Alphabet and Microsoft are thus facing a lot of pressure to reveal the data.
Amazon stock closed the latest trading session on Friday at $987.78 after a 3.16 percent drop from the value of the stock during the previous close.