Saturday 28 September 2019

Amazon’s cloud biz revenues up 121% to Rs 2,740cr

Bengaluru: Amazon Internet Services, which is the reseller for Seattle-based technology majors’ cloud business AWS in India, saw its revenues jump by 121% to Rs 2,740 crore in the financial year ending on March 2019, according to filings with RoC obtained from Tofler.

The net profit for the business also increased by 150% to Rs 71.2 crore as the company continued strong growth momentum in the sector which has also attracted the interest of India’s top conglomerates as the government is enacting laws to store data locally.

Adani Enterprises had said earlier this year that it plans to invest Rs 70,000 crore to set up data centers over the next two decades while Mukesh Ambani’s Jio plans to set up data centers in partnership with Microsoft’s Azure. Other players competing in the space include Google Cloud besides Chinese internet giants Alibaba and Tencent’s cloud units.

For Amazon Internet Services revenues include money earned from sales of compute, storage, database, and other cloud-related service offerings (including training) for start-ups, enterprises, government agencies, and academic institutions. Amazon Data Services is another unit in India which operates the data centers.

Globally, AWS is fast becoming the biggest money-making business for Amazon with 5-6 times the margins of flagship online retail business. For the calendar year 2018, AWS had operating income of $7.3 billion on net sales of $25.65 billion.

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