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AWS will see the rate of new customers slowing as its faces continued competition from other cloud providers, including Verizon, Rackspace, IBM and HP, TBR's Mirandi wrote.
AWS is gaining traction in the public sector, as 300 government agencies are now using AWS GovCloud service, the Amazon's report said.
"Government organizations are turning to cloud-based infrastructure to improve efficiencies, increase visibility, cut costs and meet mandates for data center consolidation. AWS initially launched GovCloud in August 2011 (a month before Verizon launched its federal cloud portfolio) making both vendors early-to-market IaaS vendors in the government space," Mirandi wrote.
AWS has offered more features to its government service, on Oct. 10 announcing the addition of more memory, compliance-ready storage capabilities and increased regulatory integration.
In its quarterly report for the entire company, Amazon announced a loss of $274 million, with revenue of $13.81 billion, compared with a profit of $63 million, on $10.9 billion in revenue, in the same period a year ago.
Amazon could not be reached for comment Friday.