5 ms·
I think you have it reversed, AWS accounts for most of Amazon's profit and is used to fund other ventures. > AWS revenue came accounted for 13% of Amazon’s tot
by cfors 7y ago
I think you have it reversed, AWS accounts for most of Amazon's profit and is used to fund other ventures.
> AWS revenue came accounted for 13% of Amazon’s total revenue. Of Amazon’s total $3.1 billion in operating income, 52% came from AWS. [0]
[0] https://www.cnbc.com/2019/07/25/aws-earnings-q2-2019.html https://www.cnbc.com/2019/07/25/aws-earnings-q2-2019.html
- crumpets 7y agoNo, long before AWS, Amazon intentionally re-invested all of the excess revenue that would be reported as profit back into the business instead (expanding capex and opex).
- buboard 7y agoI thought aws sprung out of investment in their own infrastructure. A happy accident of sorts, not some preplanned mammoth investment in building AWS from the ground up
- vl 7y agoNot at all. AWS, or rather S3 was a pet project of one of the very early Amazon employees who wanted to do something fun. It wasn't really taken seriously or had deep strategy at first. Once it's started to gain traction, Bezos realized the enormous potential and full-steamed-ahead AWS. Then it took many years for Amazon retail to actually start using AWS products in any meaningful way.
- deleted 7y ago[deleted]
- dlp211 7y agoThat's not how profits reporting works.
- austenallred 7y agoYes, so 52% of Amazon's operating income came from AWS. Which means, conversely, 48% came from Amazon retail and other services. In other words, it's not true to say that AWS subsidizes the rest of Amazon, or that the rest of Amazon runs at a loss.