Amazon reported that its cloud business grew at a pace of 20% in the fourth quarter of 2022. This growth is slower than projected and also comparatively slower than the 27.5% in the third quarter of 2022.
Cloud growth seems to be moderating along with some other parts in the tech industry that boomed in the last decade and peaked in the pandemic, when many businesses adopted remote work.
Amazon Web Services is a leading cloud infrastructure in the market, with approximately 39% share in 2021, as per the estimates from industry researcher Gartner. Google Cloud Platform and Microsoft’s Azure business are the top competitors of Amazon Web Services.
Microsoft recently reported that revenue from Azure and other cloud services grew by 31% down from 35% in the last year.
Revenue growth of Amazon Web Services has generally declined considerably since 2015 as the competition has increased. In the fourth quarter of 2022, AWS collected $21.4 billion in revenue, which is 14% of Amazon total revenue.
AWS CEO Adam Selipsky expressed at yearly Reinvent customer conference of company, “We do see some customers who are doing some belt-tightening now.”