Amazon says AWS enterprise dealing with short-term headwinds as firms are cautious on spending – thqaftqlm

Amazon says AWS enterprise dealing with short-term headwinds as firms are cautious on spending

Revealed: April 13, 2023 at 6:28 a.m. ET

Amazon.com Inc. AMZN stated Thursday its AWS cloud enterprise has an $85 billion annualized income run fee, however is dealing with short-term headwinds as firms are extra cautious about spending. In its annual report, Chief Govt Andy Yassy stated given the difficult macro backdrop, the AWS help group is spending time serving to prospects optimize their cloud spend. “Many of those AWS prospects inform us that they’re not cost-cutting as a lot as cost-optimizing to allow them to take their sources and apply them to rising and creative new buyer experiences they’re planning,” Yassy stated in his annual letter to shareholders….

Amazon.com Inc.

AMZN

stated Thursday its AWS cloud enterprise has an $85 billion annualized income run fee, however is dealing with short-term headwinds as firms are extra cautious about spending. In its annual report, Chief Govt Andy Yassy stated given the difficult macro backdrop, the AWS help group is spending time serving to prospects optimize their cloud spend. “Many of those AWS prospects inform us that they’re not cost-cutting as a lot as cost-optimizing to allow them to take their sources and apply them to rising and creative new buyer experiences they’re planning,” Yassy stated in his annual letter to shareholders. And whereas such short-term headwinds will soften Amazon’s progress fee, he stated lots of the AWS fundamentals are wanting good. “Our new buyer pipeline is powerful, as are our lively migrations,” he wrote. “Many firms use discontinuous durations like this to step again and decide what they strategically wish to change, and we discover an rising variety of enterprises opting out of managing their very own infrastructure, and preferring to maneuver to AWS to benefit from the agility, innovation, cost-efficiency, and safety advantages.” Amazon inventory has fallen 37% within the final 12 months, whereas the S&P 500

SPX

has fallen 8%.

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