Amazon Web Services (AWS) is now a $10bn (£6.84bn) business, its parent company Amazon announced as it revealed its Q1 financial results.
For the three months to 31 March, AWS' net sales rocketed 64 per cent annually to $2.6bn – accounting for almost nine per cent of Amazon's overall sales in the quarter. Over the same period, operating profit at AWS soared 210 per cent to $604m.
Amazon CTO Brian Olsavsky warned that although AWS' top and bottom lines are soaring, margins will remain "bumpy".
"[There was] 64 per cent growth in AWS, which is now a $10bn business," he said.
"But on the margin side, I would caution you that we're pleased, but it is very early to start drawing too many conclusions on the long-term margins in this business – they will be bumpy over time.
"At any point in time they're going to reflect the balance of investing including global expansion that [we've] talked about, price reductions we may offer, and also driving cost efficiency, which for us is a very important driver in not only this business, but also the North America and international segments."
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