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AWS hits $43bn annual run rate biz, Google Cloud reaches $3bn in Q2
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Top Stories |
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SME Times News Bureau | 31 Jul, 2020
Amazon Web Services (AWS), the Cloud arm of retail behemoth Amazon, has
become a $43 billion annualized run rate business, up nearly $10 billion
in run rate in the last 12 months.
According to Brian Olsavsky,
Chief Financial Officer at Amazon, the companies are realising that
their on-premise infrastructure is not really flexible to go up or down.
"Especially
in the time of sinking demand, it's a big fixed cost for them. So we're
seeing migration plans accelerate. They're certainly not going to
happen overnight, but we see companies moving more in that direction,"
he said during the company's earnings call on Thursday.
The average contract length is over three years now for the AWS contracts.
According
to Olsavsky, they are also seeing a lot of companies that are really
wishing that they had made more progress on the cloud "because they're
seeing how companies that are on the cloud can turn into a variable cost
and either scale up or scale down depending on their particular
situation".
Meanwhile, led by infrastructure offerings and data
and analytics platform, Google Cloud has hit $3 billion in sales for the
second quarter, up 43 per cent year-on-year.
The Google Cloud
Platform (GCP) maintained the strong level of revenue growth it
delivered in the first quarter, and its revenue growth was again
meaningfully above cloud overall.
"The GCP growth was again led
by our infrastructure offerings and our data and analytics platform.
Overall, the lower Google Cloud revenue growth in the second quarter
relative to the first quarter reflects the fact that G Suite lapped a
price increase that was introduced in April last year," explained Ruth
Porat, CFO, Google.
"G suite maintained healthy growth in
average revenue per seat as well as in seat growth, which does not
include customers who took advantage of our free trials as they shifted
their employees to work-from-home," he told the analyists after
announcing the quarterly results on Thursday.
According to
Alphabet and Google CEO Sundar Pichai, in the first half of 2020,
technology and innovation proved to be a significant recovery mechanism
for businesses.
"Those who are shifting to digital and embracing the spirit to innovate are evolving and growing," he said.
"Customers
are choosing Google Cloud to either lower their cost by improving
operating efficiency or to drive innovation through digital
transformation,"Pichai added.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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