Amazon Web Services (AWS) has reported revenue growth of 27.5% in the third quarter, the slowest year-over-year increase since the company began reporting its finances separately in 2014.
The cloud giant’s revenue for the quarter was $20.5 billion, while AWS’ operating income was $5.4 billion, up year-over-year from $4.9 billion in the third quarter of 2021.
Despite the cooling growth, AWS’s performance still outperformed the tech giant’s overall growth, which posted revenue of $127.1 billion in the third quarter of 2022, up 15% year-over-year.
Why the delay?
In a conversation with analysts reported by The register (opens in new tab)Amazon’s Chief Finance Officer Brian Olsavsky attributed the slowdown to “ongoing macroeconomic uncertainties” that have “seen an increase in AWS customers focused on controlling costs.”
Skyrocketing energy costs were also highlighted as an issue AWS is grappling with in an analyst talk, with Olsavsky saying they are “materially higher…more than 2x in the past few years.”
Regardless of the recent results, AWS still controls a huge chunk of the cloud computing pie.
Amazon Web Services (AWS) controlled 33% of the entire cloud services market (opens in new tab) in the first quarter of 2022, according to Statistica.
What’s next for AWS?
Despite already making huge profits, the company still has multiple avenues for growth.
AWS recently started offering EC2 instances based on its own line of self-manufactured Gravition chips, which use licensed ARM technology as opposed to the Nvidia or AMD chips it traditionally relied on.
AWS is a company that could soon have a much larger footprint in the UKAWS actively recruited technology-focused positions in Edinburgh and Cambridge in 2022, in addition to corporate and warehouse positions in London and Manchester.