Are you? Amazon is not known for posting profits, and is quite possibly operating AWS at a loss.
They have promised to show financial results for AWS itself with the quarterly report being released next month, so we'll see.
Are you? Amazon is not known for posting profits, and is quite possibly operating AWS at a loss.
They have promised to show financial results for AWS itself with the quarterly report being released next month, so we'll see.
Update: in FY2014, they sold $89BN ($70.1BN in products, $18.9BN in services), and their cost of sales was $62.8BN. I am pretty sure that their margins are razor-thin in retail, but the service side had higher margins.
https://gigaom.com/2013/01/07/amazons-cloud-is-bigger-more-p...
They built it so they could run Amazon.com off the infrastructure, but then decided they could make money leasing their under-subscribed portions.
If they are not making a cut-and-dry profit from AWS (I'd fathom they are, they are one of the most expensive cloud providers and many other providers turn a healthy profit), then they are at least dramatically offsetting their own Amazon.com infrastructure costs which are mandatory anyway.
http://www.networkworld.com/article/2891297/cloud-computing/...
That doesn't mean the AWS part is in itself unprofitable. I'd wager it is, given how the business is somewhat mature and they have a huge chunk of that market.