Amazon investors and the public will soon have a better idea of how much revenue the company generates from its cloud computing business.
On the company’s earnings call today, Amazon CFO Tom Szkutak said that Amazon will break out Amazon Web Services financial results starting with Q1 2015.
Amazon has never disclosed AWS financials and lumps them under an “other” category for North American sales — which also includes advertising services and co-branded credit card agreements — that generated $1.67 billion during the last quarter, up from $1.17 billion a year ago. Other tech giants like Microsoft and Google also do not specify exact financials from their cloud services in earnings reports.
“We just think it’s an appropriate way to look at our business for 2015,” Szkutak said.
Amazon also said today that AWS has more than one million active customers — the company revealed that statistic back in November — and said usage growth increased 90 percent year-over-year for Q4 2014.
Szkutak added that Amazon continues to focus on lowering prices for AWS customers and noted that since the service launched, there have been 40 “pricing actions.”
“We are investing very heavily in terms of people and capital for that business,” Szkutak said of AWS.
Amazon faces stiff competition in the cloud from Microsoft, Google and others. Earlier this week, Amazon launched a new email and calendar platform from AWS called WorkMail.
Forbes has a nice in-depth piece that published today on how AWS has become a key part of Amazon’s overall revenues.