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AWS Earnings Preview: Layoffs, Andy Jassy, Margins On Deck

Mark Haranas

Can Amazon Web Services increase operating margins? Just how much did AWS sales grow in the current economy? Will Amazon’s massive layoff round effect AWS? CRN breaks down the five most important thing to watch during Amazon’s fourth quarter earnings report next week.

Will Amazon CEO Andy Jassy make an appearance during next week’s financial quarterly earnings results amid the largest layoff round ever executed at Amazon?

Is Amazon Web Services on pace to achieving a $100 billion revenue milestone in 2023?

Will AWS’ operating margins continue to decrease?

CRN breaks down the five most important things to watch for next week on Feb. 2 when Amazon reports AWS earnings result for its fourth fiscal quarter 2022 at 4:30 p.m.

[Related: 40,000 Tech Layoffs: Amazon Vs. Google Vs. Microsoft]

AWS And Amazon Earnings

AWS is one of the most strategic assets of Amazon, not only because of its technology innovation, but its profitability helps keep Amazon in the black.

The $80 billion cloud market share leader has also been increasing sales at a much faster rate than its parent company. For example, in third quarter 2022, AWS sales increased 28 percent year over year to $20.5 billion, representing a much higher revenue increase compared with Amazon’s 15 percent growth year on year.

The Seattle-based cloud market share leader is so important to Amazon that the company selected AWS’ former CEO Andy Jassy to take over the reins of Amazon in 2021, replacing longtime CEO Jeff Bezos.

Public Cloud Spending Is Soaring

Worldwide public cloud revenue jumped 21 percent in 2022 to a record $544 billion, according to new data this week from IT market research firm Synergy Research Group.

“Revenues from cloud services are now more than three times those of cloud infrastructure hardware and software revenues, and service growth continues to outpace the infrastructure market,” said John Dinsdale, chief analyst at Synergy Research, in an email to CRN.

Synergy is forecasting that public cloud ecosystem revenues will double in size by 2027, meaning spending on public cloud solutions and services will balloon to well over $1 trillion in the next four years.

With this type of cloud growth in mind along with Amazon laying off 18,000 employees, all eyes will be on AWS earnings results next week. Here are five things you need to watch for.

 

 
Mark Haranas

Mark Haranas is an assistant news editor and longtime journalist now covering cloud, multicloud, software, SaaS and channel partners at CRN. He speaks with world-renown CEOs and IT experts as well as covering breaking news and live events while also managing several CRN reporters. He can be reached at mharanas@thechannelcompany.com.

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