recommended reading

Amazon’s Cloud Price War With Google Is Starting to Hurt

Ken Wolter/Shutterstock.com

The numbers: Mixed, as always. Amazon sales grew in the double-digits for the 52nd quarter in a row. Revenue increased 23% year-over-year to $19.3 billion. Operating loss reached $15 million, down from a $79 million operating profit a year ago.

Amazon quarterly sales and growth chart Q2 2014

The takeaway: Customers are loving Amazon. Investors aren’t. Operating loss for the third quarter is forecast between $410 million and $810 million, compared to $25 million a year ago, as Amazon invests in a wide range of products from its poorly reviewed Fire phone to its original web video efforts and cloud platforms. Shares fell 10% in after-hours trading.

What’s interesting: Amazon Web Services, Amazon’s cloud-computing business, is now mature enough to affect Amazon’s overall numbers. Amazon made a big price cut in late March to counter aggressive pricing from Google, with service price declines up to 65%. Customers loved it, with usage increasing 90% year-over-year, Amazon said today on its earnings call. But revenue growth took a hit as a result.

Amazon doesn’t break out AWS revenue specifically, but it’s the largest part of Amazon’s “North America – Other” segment, where growth fell to 38% year-over-year after consistent percentage growth rates in the 50s and 60s over the past two years.

Amazon Web Services revenue chart Q2 2014

Reprinted with permission from Quartz. The original story can be found here

(Image via Ken Wolter/Shutterstock.com)

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download

When you download a report, your information may be shared with the underwriters of that document.