![]() ![]() ![]() “We’re working to build customer relationships and a business that will outlast all of us. “As a reminder, we’re not trying to optimize for any one quarter or year,” he said. “As expected, customers continue to evaluate ways to optimize their cloud spending in response to these tough economic conditions in the first quarter.”ĪWS is seeing these optimizations continue into the second quarter with April revenue growth rates about 500 basis points lower than what the company saw in the first fiscal quarter, Olsavsky said. “Given the ongoing economic uncertainty, customers of all sizes in all industries continue to look for cost savings across their businesses, similar to what you’ve seen us doing at Amazon,” Olsavsky said. “And in my opinion, few folks appreciate how much new cloud business will happen over the next several years from the pending deluge of machine learning that’s coming.”īrian Olsavsky, Amazon’s senior vice president and chief financial officer, said during his prepared remarks that AWS revenue in the fiscal first quarter of 2023 increased 16 percent year over year, representing an annualized sales run rate of more than $85 billion. “Our recent announcement on large language models and generative AI, and the chips and managed services associated with them, is another recent example,” he said. If you believe that equation is going to flip, which we do, it’s going to move to the cloud, and having the cloud infrastructure offering the broadest functionality by a fair bit, the best security, and operational performance, and the largest partner ecosystem bodes well for us moving forward.”Įven so, Amazon is far from done inventing at AWS, Jassy said. And people sometimes forget that 90-plus percent of global IT spend is still on premises. The product innovation and delivery is rapid and compelling. “The set of ongoing migrations of workloads to AWS is strong. “The new customer pipeline looks strong,” he said. One of the great attributes of the cloud is that you can scale seamlessly up or down if demand dictates, which is not the case with on-premises infrastructure.”ĪWS and the cloud are proving to be key ways to help customers spend less during this challenging time, Jassy said. “They tell us that most of it is cost optimizing versus cost cutting, which is an interesting distinction because they say they’re cost optimizing to reallocate those resources on new customer experiences. “Customers are looking for ways to save money however they can right now,” Jassy said. Jassy, in his prepared remarks Thursday during Amazon’s fiscal first quarter 2023 financial analyst call, said AWS is seeing enterprises continuing to be cautious in their spending in this uncertain time. Amazon Web Services continues to show growing strength, but businesses are only starting to see the potential optimizations they can expect as AWS continues to grow and innovate, according to Amazon President and CEO Andy Jassy. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |