Like Azure last week, AWS reported some slump in cloud revenue growth today, falling from 49% growth last year at 37% this year. Total revenues increased from Q2 last year, from $ 6,105 billion to $ 8,381 billion this year. Today's report gives the company an astonishing run of $ 33 billion – just for AWS. It is a successful company, not against the fact that it is a division of a larger organization.
And Amazon has to rejoice that it is, as AWS accounted for 1
Amazon controls about 33% of the market, while Microsoft accounts for about 16%. No matter how many numbers you look at, AWS has about twice as much market share as Microsoft, but Microsoft remains the only company with double digit market share up to that point.
The fall of both companies could simply be attributed to the law of large numbers, which say as large as these two companies, it becomes more difficult to maintain the type of growth rates they were with over time, even in an accelerating market.
"What we see is the law of large numbers where the revenue becomes so high, the increase in the growth rate becomes more difficult. AWS's dollar gain is still greater than the figure 2-5 [rivals] combined," said Patrick Moorhead, chief analyst at Moor Insights & Strategy, for TechCrunch.
When markets mature, growth slows only naturally, and Amazon could not sustain growth in the 40s forever, no matter how hot the market is – no matter what, revenue is still impressive and AWS continues to drive Amazons success.