In this Cloud Wars Minute, Bob reviews the Q3 results of AWS and explains how inflation is impacting cloud providers.
Highlights
00:38 — Amazon’s “major message” about the role AWS is playing for customers is to help them fight inflation. During Amazon’s earnings call, which took place on October 27, CFO Brian Oslavsky shared how the company is assisting its customers during the highs and lows of inflation.
01:00 — AWS is offering new capabilities, technologies, and cloud services to help customers battle inflation. The company has done this historically, according to Oslavsky. The efforts of AWS here give businesses the chance to move from fixed expenses to variables, which is important during times of uncertainty.
01:33 — For the first time in its history, AWS has exceeded the $20 billion mark in quarterly revenue. The organization increased its total cloud revenue by 27% for a total of $24.5 billion in quarterly earnings. From Q2 to Q3, its growth rate fell from 33% to 27%. In Q3 of 2021, AWS grew at a rate of 39%.
02:22 — As revenue bases increase, it becomes difficult to sustain consistently large growth rates. Inflation and recession fears are directly impacting AWS customers’ decisions to buy.
02:47 — Similar to AWS, Microsoft experienced a decline in its sequential growth rate from Q2 to Q3, which highlighted the growth rate increase that Google Cloud had in the third quarter. Of the three major hyperscale companies, Google Cloud was the only one that saw a rise in its growth rate.
03:51 — Inflation is on the mind of every business leader, as they must control costs more effectively, and AWS is on the right track, says Bob. He says he was not surprised to find that Oslavsky emphasized these ideas on the earnings call.
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