{"id":642876,"date":"2023-04-29T10:06:13","date_gmt":"2023-04-29T15:06:13","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/04\/29\/aws-suffers-year-on-year-drop-in-profit-and-revenue-growth-as-enterprises-curb-cloud-spend\/"},"modified":"2023-04-29T10:06:13","modified_gmt":"2023-04-29T15:06:13","slug":"aws-suffers-year-on-year-drop-in-profit-and-revenue-growth-as-enterprises-curb-cloud-spend","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/04\/29\/aws-suffers-year-on-year-drop-in-profit-and-revenue-growth-as-enterprises-curb-cloud-spend\/","title":{"rendered":"AWS suffers year-on-year drop in profit and revenue growth as enterprises curb cloud spend"},"content":{"rendered":"<div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.computerweekly.com\/visuals\/German\/article\/cloud-service-outage-3-adobe_searchsitetablet_520X173.jpg\" data-credit=\"Romolo Tavani - stock.adobe.com\"  width=\"520\" height=\"173\" alt><\/p>\n<p>Romolo Tavani &#8211; stock.adobe.com<\/p>\n<\/p><\/div>\n<div id=\"content-header\">\n<h2>The first quarter results for AWS show the firm is continuing to feel the effects of enterprise customers \u201coptimising\u201d their cloud spend<\/h2>\n<\/div>\n<div id=\"content-center\">\n<ul>\n<li><i data-icon=\"1\"><\/i><\/li>\n<li><i data-icon=\"2\"><\/i><\/li>\n<\/ul>\n<div id=\"contributors-block\">\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"Caroline Donnelly\">\n\t\t\t\t\t<\/p>\n<p><span>By<\/span><\/p>\n<ul>\n<li>\n\t\t\t\t\t<a href=\"https:\/\/www.techtarget.com\/contributor\/Caroline-Donnelly\">Caroline Donnelly,<\/a><br \/>\n\t\t\t\t\t\t<span>Senior Editor, UK<\/span>\n\t\t\t\t\t\t<\/li>\n<\/ul>\n<p>\n\tPublished: <span>28 Apr 2023 12:30<\/span>\n<\/p>\n<\/div>\n<section id=\"content-body\">\n<p>The annual revenue growth rate for Amazon\u2019s cloud arm is continuing to slow, as enterprises look for ways to optimise the costs involved in running their IT estates off-premise, as evidenced by the e-commerce giant\u2019s first-quarter results for 2023.<\/p>\n<p>The revenue generated by <a href=\"https:\/\/www.computerweekly.com\/news\/365535676\/Amazon-Web-Services-selects-14-startups-for-space-accelerator\">Amazon Web Services<\/a> (AWS) for the quarter covering the three months to 31 March 2023 reached $21.4bn, which is up 16% on the previous year. It did, however, suffer a year-on-year drop in profit from $6.5bn during Q1 2022 to $5.1bn this year.<\/p>\n<p>The revenue growth rate is markedly down on Q1 2022, when AWS reported a 37% year-on-year revenue jump, as the company continues to feel the impact of customers tightening their belts amid the ongoing macroeconomic uncertainty, said the firm\u2019s chief financial officer, Brian Olsavsky, in a call transcribed by <a href=\"https:\/\/seekingalpha.com\/article\/4597544-amazon-com-inc-amzn-q1-2023-earnings-call-transcript\">Seeking Alpha<\/a>.<\/p>\n<p>\u201cAs expected, customers continue to evaluate ways to optimise their cloud spending in response to these tough economic conditions in the first quarter,\u201d he said.<\/p>\n<p>\u201cAs a reminder, we\u2019re not trying to optimise for any one quarter or year. We\u2019re working to build customer relationships and a business that will outlast all of us. Therefore, our AWS sales and support teams continue to spend much of their time helping customers optimise their AWS spend so they can better weather this uncertain economy.<\/p>\n<p>\u201cThis customer orientation is built into our DNA and how we think about our customer relationships and business over the long term,\u201d said Olsavsky.<\/p>\n<p>This is in line with what Amazon CEO Andy Jassy told shareholders in a <a href=\"https:\/\/www.aboutamazon.co.uk\/news\/company-news\/amazon-ceo-andy-jassy-2022-letter-to-shareholders\">letter published online earlier this month<\/a>, where he said AWS sales and support teams were spending \u201cmuch of their time helping customers optimise their AWS spend\u201d so they can \u201cbetter weather this uncertain economy\u201d.<\/p>\n<p><a href=\"https:\/\/www.computerweekly.com\/news\/365532937\/Amazon-CEO-Andy-Jassy-confirms-9000-further-job-cuts-across-AWS-Twitch-and-its-advertising-arm\">As reported by Computer Weekly,<\/a> AWS is also undergoing some cost-cutting measures of its own, with the news that it would be one of several business divisions on course to lose 9,000 members of staff, as part of an ongoing push across the whole of Amazon to trim its headcount.<\/p>\n<p>Jassy also appeared on the analyst conference call, where he said there was a difference between customers wanting to cut costs verses optimise them.<\/p>\n<p>\u201c[Customers] tell us that most of it is cost-optimising versus cost-cutting, which is an interesting distinction because they say they\u2019re cost-optimising to reallocate those resources on new customer experiences,\u201d he said.<\/p>\n<p>\u201cThe new customer pipeline looks strong,\u201d said Jassy. \u201cThe set of ongoing migrations of workloads to AWS is strong. The product innovation and delivery is rapid and compelling. And people sometimes forget that 90-plus percent of global IT spend is still on-premise. If you believe that equation is going to flip, which we do, it\u2019s going to move to the cloud.\u201d<\/p>\n<p>In terms of the whole company results, Amazon\u2019s overall revenue was up 9% year-on-year, hitting $127.4bn, and it also made a profit of $4.8bn, up on the previous year, when it made $3.7bn during Q1 2022.<\/p>\n<\/section>\n<section id=\"DigDeeperSplash\">\n<h4>\n\t\t\t<i data-icon=\"m\"><\/i>Read more on Infrastructure-as-a-Service (IaaS)<\/h4>\n<ul>\n<li><a id=\"DigDeeperItem-1\" href=\"https:\/\/www.computerweekly.com\/news\/365532937\/Amazon-CEO-Andy-Jassy-confirms-9000-further-job-cuts-across-AWS-Twitch-and-its-advertising-arm\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/German\/article\/price-drop-2-adobe_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/German\/article\/price-drop-2-adobe_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/German\/article\/price-drop-2-adobe.jpg 1280w\" alt ><\/p>\n<h5>Amazon CEO Andy Jassy confirms 9,000 further job cuts across AWS, Twitch and its advertising arm<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-2\" href=\"https:\/\/www.computerweekly.com\/news\/365530163\/AWS-talks-up-healthy-and-robust-customer-pipeline-as-revenue-growth-continues-to-slow\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/financial-results-chart-graph-3-adobe_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/financial-results-chart-graph-3-adobe_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/financial-results-chart-graph-3-adobe.jpeg 1280w\" alt ><\/p>\n<h5>AWS talks up &#8216;healthy and robust&#8217; customer pipeline as revenue growth continues to slow<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-3\" href=\"https:\/\/www.computerweekly.com\/news\/252523303\/AWS-remains-high-point-in-Amazon-results-as-company-posts-another-quarter-loss\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/financial-results-chart-graph-4-adobe_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/financial-results-chart-graph-4-adobe_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/financial-results-chart-graph-4-adobe.jpeg 1280w\" alt ><\/p>\n<h5>AWS remains high point in Amazon results as company posts another quarter loss<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/Caroline Donnelly.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-4\" href=\"https:\/\/www.computerweekly.com\/news\/252516524\/AWS-grows-as-Amazon-posts-net-loss\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/searchCloudSecurity\/architecture\/cloudsecurity_article_003_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/searchCloudSecurity\/architecture\/cloudsecurity_article_003_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/searchCloudSecurity\/architecture\/cloudsecurity_article_003.jpg 1280w\" alt ><\/p>\n<h5>AWS grows as Amazon posts net loss<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Cliff-Saran-Sep-2022-140x180px.jpg\" alt=\"CliffSaran\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Cliff\u00a0Saran<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<\/ul>\n<\/section>\n<\/div>\n<p><a href=\"https:\/\/www.computerweekly.com\/news\/366535913\/AWS-suffers-year-on-year-drop-in-profit-and-revenue-growth-as-enterprises-curb-cloud-spend\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Camellia Stoval<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Romolo Tavani &#8211; stock.adobe.com The first quarter results for AWS show the firm is continuing to feel the effects of enterprise customers \u201coptimising\u201d their cloud spend By Caroline Donnelly, Senior Editor, UK Published: 28 Apr 2023 12:30 The annual revenue growth rate for Amazon\u2019s cloud arm is continuing to slow, as enterprises look for ways<\/p>\n","protected":false},"author":1,"featured_media":642877,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[841,46,118277],"tags":[],"class_list":{"0":"post-642876","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-suffers","8":"category-technology","9":"category-year-on-year"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/642876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=642876"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/642876\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/642877"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=642876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=642876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=642876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}