Home > Latest News > Amazon Signals Cloud Price War

Amazon Signals Cloud Price War

Amazon Signals Cloud Price War

Amazon is banking on a range of price cuts to lure more customers to its AWS cloud computing business as 30,000 delegates arrive in the Vegas gambling mecca for its re:Invent conference.

AWS is expected to top US$12 billion in revenue this year, compared with $7.9 billion last year – and Amazon depends on heavily on the unit for profit and growth.

But the latest price cuts are making investors nervous as competition from Google and Microsoft gathers pace, and a third player, China’s Alibaba Cloud, moves into international markets, including Japan and Australia.

Prices for AWS data-storage services have been cut by more than 20 percent, while reductions in the company’s compute services range from 5 percent to 25 percent, depending on the type of service and geography.

Even so, Amazon’s operating income is expected to nearly double this year to $4.1 billion and surge another 79pc to $7.4 billion next year.

You may also like
Amazon Announce EOFY Smart Home Deals
Is Amazon As Big As They Claim? Some Say No, As Sales Fall
Amazon Retail Boss Defends Private Label Business
Amazon Australia Launch 2019 Mid-Year Sale
Amazon ‘Echo Show 5’ Takes On Lenovo Smart Clock