AWS's AI Powered Growth Boost

AWS added $4.1B in revenue over the past 12 months - nearly 2X CrowdStrike's entire ARR. 📊 AWS re-acceleration continues, hitting 19% growth fueled by AI, now a "multibillion-dollar revenue run-rate business" itself. Let’s break it down

Amazon Web Services (AWS) revenue rose 19% to $26.3Bn in Q2, beating analysts’ forecasts and marking a significant uptick from the 17% last quarter and 13% in the quarter before. AWS now has reached >$105 Bn revenue run rate.

💎Cloud Commits Remain Steady

AWS revenue backlog remains robust, showing a slight dip QoQ after a major $22.7Bn jump in Q1. Despite this, the YoY growth rate of commits remains strong at 19%.

This quarter's commits: $156.6Bn

Last quarter's commits: $155.7Bn

Andy Jassy emphasized that AWS's growth will continue as more companies will migrate to cloud. Customer demand for AI services is “amplifying” AWS cloud sales, as CFO Brian Olsavsky noted.

♾️ Focus on multiple AIs and Partner Ecosystem

For AI strategy AWS embraces a multi AI/tool mindset and a broad partner ecosystem. Jassy explained,

“At the heart of this strategy is a firmly held belief which we've had since the beginning of AWS that there is not one tool to rule the world. People don't want just one database option or one analytics choice one container type ..

They want multiple options for flexibility and to use the best tool for each job to be done. The same is true in AI.”

💲 AI “Significant” Customer Demand

As AWS ramps up investments in AI infrastructure, they back the strategy by rapidly growing customer demand. Jassy underscored:

“While we're investing a significant amount in the AI space and in infrastructure, we would like to have more capacity than we already have today…

It’s interesting that we have a multibillion-dollar revenue run rate already in AI, and it’s so early. But if we look at the amount of demand that we have from customers right now, it's very significant.”

📈 AI is “going to get big fast”

Amazon CEO reminded that “90% of the global IT spend is still on-premises. And if you believe that equation is going to flip, which I do, there's a lot of growth ahead of us in AWS …

In the generative AI space, it's going to get big fast and it's largely all going to be built from the get-go in the cloud... ”

🗃️ Getting Data in Shape in Essential

Jassy emphasized that many companies need to prepare their data to take advantage of AI. Those who already moved to the cloud are now ahead in AI, driving significant growth for AWS.

“When we work directly with customers, as well as when we work with systems integrator partners, everyone is in a hurry to get going on doing generative AI

and one of the first questions that we ask is show us where your data is, show us what your data lake looks like…”

As we look ahead, how are you positioning your partnerships to capitalize on this AI-driven cloud acceleration?

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