This Cloud Company Is Less Than 1% the Size of Amazon's AWS, but It's Growing Faster and It Expects Double-Digit Growth Again in 2024
To call Amazon an e-commerce giant would be an accurate description -- but an incomplete one. The company does far more than just sell stuff online. It also produces original video content, sells advertising, and provides shipping and logistics services, among other things. But its most important "other" business is undoubtedly its cloud-computing platform, Amazon Web Services (AWS).
Why is AWS so important to Amazon? You'll have to look beyond revenue. While AWS made $91 billion in sales last year, it was only 16% of the whole company's total. However, the nearly $25 billion it earned in operating income amounted to 67% of Amazon's entire amount. In short, AWS is crucial to Amazon because it supplies most of the company's profits.
AWS is a huge player in the cloud space and a great business in its own right. But one small rival is currently growing at a faster pace, and investors would do well to pay it some attention.
Source Fool.com
