IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

AWS shakes off outages with 40% surge in revenue

However, analysts warn the cloud giant should be wary of the 'impressive growth' of Microsoft and Google

Adam Selipskey takes the stage for his AWS Re:Invest keynote

Amazon Web Services (AWS) reported 40% revenue growth year-on-year despite enduring a quarter marred by outages. 

The cloud arm of Amazon generated $17.8 billion in the fourth quarter of 2021, once again boosting the overall earnings of its parent company. 

The online retail giant reported profits of $14.32 billion on Thursday with sales up 24%. However, almost 13% of Amazon's total revenue came from AWS and 153% of its overall operating income has been attributed to cloud services. 

"On the growth rate, I think it's a combination of things. We've been adding resources in sales and marketing over the last two years, and that is starting to pay off," Brian Olsavsky, Amazon's finance chief, said during a conference call with analysts.

Its continued growth is all the more impressive considering the service was shaken by major outages over the fourth quarter. Each became headline news around the world because they the dominance of AWS and the risks associated with having so many services reliant on a single cloud vendor. 

However, while AWS still accounts for a third of the worldwide market it should be looking over its shoulder at the "truly impressive growth" of Microsoft and Google Cloud, according to SRG Research's chief analyst John Dale.

 
"It has taken Microsoft 18 quarters to double its market share, which has now passed the 21% mark," Dale told IT Pro. "Despite a relatively late start, Google too is now accelerating the pace of its cloud activities. Its market share remains at less than half that of Microsoft, but it continues to post some strong growth numbers." 

While Google Cloud is mopping up market share, the service is still some way off profitability, with the business posting a loss of  $3.1 billion for 2021.

Featured Resources

Meeting the future of education with confidence

How the switch to digital learning has created an opportunity to meet the needs of every student, always

Free Download

The Total Economic Impact™ of IBM Cloud Pak® for Watson AIOps with Instana

Cost savings and business benefits

Free Download

The business value of the transformative mainframe

Modernising on the mainframe

Free Download

Technology reimagined

Why PCaaS is perfect for modern schools

Free Download

Most Popular

How to boot Windows 11 in Safe Mode
Microsoft Windows

How to boot Windows 11 in Safe Mode

7 Jun 2022
The top programming languages you need to learn for 2022
Careers & training

The top programming languages you need to learn for 2022

23 Jun 2022
Swift exit: How the world cut off Russian banks
finance

Swift exit: How the world cut off Russian banks

24 Jun 2022