AWS third-quarter revenue grew 78% year-over-year, a slight deceleration from 82% growth in the second quarter. Growth was significantly slower in previous quarters because of a price cut in early 2014.
The division generated more than $500 million in operating income during the quarter, and $1.4 billion over the past four quarters. It represented more than 50% of Amazon’s consolidated-segment operating income, despite only generating 8% of the company’s sales.
Put another way: AWS generated almost as much operating income during the third quarter ($521 million) as Amazon’s entire North America e-commerce business ($528 million).
Amazon shares are up 10% in after-hours trading on overall strong performance.
Amazon Web Services (AWS)
AWS, a collection of remote computing services, also called web services, make up a cloud-computing platform offered by Amazon.com. These services operate from 11 geographical regions across the world. The most central and well-known of these services arguably include Amazon Elastic Compute Cloud and Amazon S3. Amazon markets these products as a service to provide large computing-capacity more quickly and more cheaply than a client company building an actual physical server farm.