The year 2020 saw online retail giant Amazon take a hit to its finances due to the impacts of the COVID-19 pandemic. With its retail operations hampered by lockdowns and changes to consumer habits, Amazon reported a 27% drop in profits in the first quarter of the year compared to the same period in 2019.
However, one area of Amazon’s business that has been a constant standout in the face of adversity has been Amazon Web Services (AWS), the company’s cloud computing arm. AWS has provided a reliable source of income for the ecommerce giant throughout the pandemic, and its performance has gone from strength to strength.
AWS boasts a comprehensive portfolio of cloud-based products and services that meet the needs of companies of all sizes. Its reliability and ability to scale up quickly has made it a favourite among businesses and entrepreneurs across a wide range of industries.
In the face of the pandemic, AWS has allowed many businesses to quickly and securely transition to remote working models with relative ease. This has allowed them to stay afloat during difficult times and to keep their customers on board.
In addition to being reliable, AWS is also highly cost effective. This not only makes it attractive to customers, but it allows Amazon to maintain profitability in its cloud division even when other areas of its business are struggling.
AWS is estimated to account for around 75% of Amazon’s total operating income, and it looks set to remain a crucial element of the company’s success for the foreseeable future. With its impressive performance this year and its proven ability to weather any storm, it’s no surprise that Amazon is relying increasingly on AWS as its main source of income.
