Amazon Web Services (AWS) reported third-quarter revenue growth of 27.5%, the slowest year-over-year growth since the company began reporting its financials separately in 2014.
The cloud giant’s revenue for the quarter was $20.5 billion, while AWS’s operating income was $5.4 billion, up from $4.9 billion year over year in the third quarter of 2021.
Despite cooling growth, AWS’s performance still outpaced that of the broader tech giant, which reported revenue of $127.1 billion in the third quarter of 2022, a 15% year-over-year increase.
Why the delay?
In a call with analysts, reported by The registry (opens in new tab)Brian Olsavsky, Amazon’s chief financial officer, attributed the slowdown to “continued macroeconomic uncertainty” that “saw an uptick in AWS customers focused on controlling costs.”
Skyrocketing energy costs were also highlighted as an issue AWS is grappling with in a call with analysts, with Olsavsky saying they are “significantly higher … more than 2x over the last few years.”
Regardless of its recent performance, AWS still controls a huge portion of cloud computing.
Amazon Web Services (AWS) controls 33% of the the entire cloud services market (opens in new tab) in the first quarter of 2022, according to Statistica.
What’s next for AWS?
Although already making huge profits, the company still has multiple avenues for growth.
AWS recently began offering EC2 instances based on its own line of proprietary Gravition chips, which use licensed ARM technology as opposed to the Nvidia or AMD chips it traditionally relies on.
AWS is a company that it may soon have a much larger footprint in the UKin 2022, AWS is actively recruiting for technology-focused jobs in Edinburgh and Cambridge, in addition to corporate and warehouse positions in London and Manchester.
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