Amazon Cloud Computing: Like many companies, Amazon.com, Inc. (NASDAQ:AMZN) prefers to keep some details under wraps. For example, the company tries to keep its cloud computing revenue to itself, despite the fact the everybody knows it is a big part of the retail giant’s business.
In today’s day and age, keeping these kinds of secrets is not always simple. As hard as Amazon may try, information is going to leak and people are going to find what they are looking for.
And it appears that this has happened once again, this time with information pertaining to Amazon.com, Inc. (NASDAQ:AMZN)’s cloud computing business.
In a recent article by Quartz, the top is blown off this secret (sort of). It is not like this information making its way to the public is that big of a deal. But anytime a company tries to keep something hidden, others want to learn more no matter what it takes.
Thanks to some top of the line detective work by Quartz, we are able to get a basic idea of how much Amazon makes on its cloud computing business (known as Amazon Web Services).
Are you ready for a number that is going to knock your socks off? Approximately $2.4 billion per year. Yes, that is billion with a “B.”
During its digging, Quartz was able to deduct some numbers from the latest Amazon.com, Inc. (NASDAQ:AMZN) earnings report. For instance, you can take out the $750 million for Amazon Web Services, Advertising Services, and Co-branded Credit Cards.
Along with the above, there is this: “Thanks to some digging by Reuters, which cites former Amazon executive David Selinger, Amazon is already making at least $500 million a year selling ads, and that could go to $1 billion by the end of the year.”
And then, for the sake of coming up with an estimate, they wrote off $25 million per quarter to its credit card business.
Now, the only thing left is Amazon Web Services (AWS). And here is what you get:
“The remainder of revenue from that chart is $600 million made by AWS last quarter, on track for $2.4 billion this year. I’ve reached out to Amazon for comment on this figure, and will update if they get back to me.”
It will be interesting to see if Amazon.com, Inc. (NASDAQ:AMZN) has a comment, or if the company continues to keep things quiet on this front.
What do you think? Is this number from Quartz accurate or close to being accurate?
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