AWS hits $43bn annual run rate biz, Google Cloud reaches $3bn in Q2

New Delhi: Amazon Web Services (AWS), the Cloud arm of retail behemoth Amazon, has become a $43 billion annualized run rate business, up nearly $10 billion in run rate in the last 12 months.

According to Brian Olsavsky, Chief Financial Officer at Amazon, the companies are realising that their on-premise infrastructure is not really flexible to go up or down.

“Especially in the time of sinking demand, it’s a big fixed cost for them. So we’re seeing migration plans accelerate. They’re certainly not going to happen overnight, but we see companies moving more in that direction,” he said during the company’s earnings call.

The average contract length is over three years now for the AWS contracts.