US Markets
Home›US Markets›Sectors›Amazon and Microsoft cloud growth accelerates as AWS a…
Amazon and Microsoft cloud growth accelerates as AWS and Azure expand
The article notes AWS contributed 59% of Amazon's Q1 operating profits, while Azure is growing about 40% versus AWS at about 28%.
Amazon and Microsoft are expanding their cloud computing businesses, with AWS and Azure drawing new clients and extending agreements with existing customers, a trend the article links to continued revenue growth, according to Yahoo Finance.
The piece says AWS is Amazon's largest profitability driver, generating more operating profits than its retail commerce divisions, and accounting for 59% of the bottom line during Q1, as Amazon plans to spend $200 billion on data center capital expenditures this year.
On Microsoft’s side, the article describes Azure as a growing portion of the company’s business, citing growth of about 40% compared with AWS’s roughly 28% pace, while also noting Microsoft does not publicly disclose individual operating characteristics for each segment.
In the most recently reported quarters, Yahoo Finance says Amazon’s overall revenue rose 17% and Microsoft’s grew 18%, concluding that the two companies present a relatively even picture for investors based on the reported figures.