Amazon mints a BILLION BUCKS from its cannibal cloud

Bezos & Co tower over competition in Q4 results


Amazon's cloud division has brushed off competition from Google and Microsoft to report record revenue of $1.234bn, and grew its business abroad to historic highs as well.

Amazon took in $1.234bn in cash in its "other" revenue segment in the fourth quarter of 2013, the company announced on Thursday, up from $1.011bn in the previous quarter. $1.170bn came from North America, where Amazon operates its largest and longest-running data centers, and $64m from abroad as companies gave a large collective shrug to worries over US spying on cloud data.

Though Amazon does not break out cloud revenue directly, it does stick it in a mysterious category named "other" which also wraps in cash made from advertizing revenue and some other fringe products. A recent report – which El Reg dived into and verified – reckoned advertizing would slurp in $835m for the whole of 2013, so the year's "other" figures of $3.934bn likely represent a good $2.9bn in cloud revenue.

Incidentally, this comes in a shade above our own most recent prediction that Amazon would make $3.7bn in "other" revenue this year.

Amazoncloudrevq4

Amazon's cloud dominates the rentable compute and storage market

Though the few billion in revenue is a minnow compared to Amazon's overall revenues of nearly $75bn for the year, it is a valuable figure as it gives us an indication of how much cash Amazon is generating from as-a-service rentable computing. Remember – the bigger companies like Amazon get, the more money they hoover up that would otherwise be spent on upgrades to bit barns owned and operated by smaller companies, according to the Uptime Institute.

This compares with a claim by Microsoft that its Azure cloud wing was a billion-dollar business when measured on an annual basis, and Rackspace's most recent quarterly revenue of $108.4m for its public cloud. Google also operates its own anti-Amazon cloud products via Google App Engine and Google Compute Engine, but doesn't break out revenue in a meaningful format.

The results may also salve some concerns in the industry that revelations by Edward Snowden about US spying could have blunted the growth of cloud computing. Judging by Amazon, people are already committed to the cloud, and even punters abroad are spending more than ever given the international takings were a record $13m higher than previous quarters. ®

Broader topics


Other stories you might like

  • US won’t prosecute ‘good faith’ security researchers under CFAA
    Well, that clears things up? Maybe not.

    The US Justice Department has directed prosecutors not to charge "good-faith security researchers" with violating the Computer Fraud and Abuse Act (CFAA) if their reasons for hacking are ethical — things like bug hunting, responsible vulnerability disclosure, or above-board penetration testing.

    Good-faith, according to the policy [PDF], means using a computer "solely for purposes of good-faith testing, investigation, and/or correction of a security flaw or vulnerability."

    Additionally, this activity must be "carried out in a manner designed to avoid any harm to individuals or the public, and where the information derived from the activity is used primarily to promote the security or safety of the class of devices, machines, or online services to which the accessed computer belongs, or those who use such devices, machines, or online services."

    Continue reading
  • Intel plans immersion lab to chill its power-hungry chips
    AI chips are sucking down 600W+ and the solution could be to drown them.

    Intel this week unveiled a $700 million sustainability initiative to try innovative liquid and immersion cooling technologies to the datacenter.

    The project will see Intel construct a 200,000-square-foot "mega lab" approximately 20 miles west of Portland at its Hillsboro campus, where the chipmaker will qualify, test, and demo its expansive — and power hungry — datacenter portfolio using a variety of cooling tech.

    Alongside the lab, the x86 giant unveiled an open reference design for immersion cooling systems for its chips that is being developed by Intel Taiwan. The chip giant is hoping to bring other Taiwanese manufacturers into the fold and it'll then be rolled out globally.

    Continue reading
  • US recovers a record $15m from the 3ve ad-fraud crew
    Swiss banks cough up around half of the proceeds of crime

    The US government has recovered over $15 million in proceeds from the 3ve digital advertising fraud operation that cost businesses more than $29 million for ads that were never viewed.

    "This forfeiture is the largest international cybercrime recovery in the history of the Eastern District of New York," US Attorney Breon Peace said in a statement

    The action, Peace added, "sends a powerful message to those involved in cyber fraud that there are no boundaries to prosecuting these bad actors and locating their ill-gotten assets wherever they are in the world."

    Continue reading

Biting the hand that feeds IT © 1998–2022