Amazon had a good quarter, squeezing an unexpected $ 92 million profit out of $ 23.18 billion in revenue. But the picture for its cloud division Amazon Web Services was even better: a $ 391 million profit based on $ 1.82 billion in revenue. That's a 407 percent increase in profit from the year before, and an 81 percent bump in revenue.
Amazon launched AWS in 2006, but only just started breaking out its Amazon Web Services revenue last quarter. The lack of transparency prompted years of speculation about how much money Amazon was making from the service and whether it was operating with the the same razor thin margins as its retail business. We now know that it's one of the company's most profitable, and high margin, lines.
Amazon has made $ 3.389 billion in revenue from AWS in the first half of the year. Microsoft expects to make $ 8 billion this year off its cloud division, but that estimate includes cloud business offerings like Office 365 and Dynamics in addition to its Azure service, which competes more directly with AWS. Google doesn't break out earnings for its Cloud Platform services.
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