AWS had a successful year by any measure. The company continued to behave like a startup with the kind of energy and momentum to invest in new areas not usually seen in an incumbent with a significant marketshare lead.
How good a year was it? According to numbers from Synergy Research, the company remains the category leader by far with around 35 percent marketshare. Microsoft sits well behind in second place with around 11 percent. Yet AWS showed growth every quarter with an overall growth rate of over 40 percent, fairly remarkable when you consider that it is operating from a large marketshare position where it becomes much more difficult to continue hanging up such big numbers.
“While we forecast 40% growth in the total market for 2017, there’s still something a little shocking about seeing a business unit the size of AWS consistently growing its revenues by over 40%,” John Dinsdale, chief analyst and research director at Synergy Research Group said in a statement.
Yet, for the three quarters it reported in fiscal 2017, the company went from $3.6 billion in Q1 to $4.1 billion in Q2 to $4.5 billion in Q3. It marked the 14th straight quarter of revenue growth. It would have been 16, but for a little dip between Q1 and Q2 in 2014.
Part of that can be attributed to the fact that the cloud market itself is growing at a remarkably rapid rate. All of the cloud companies are growing quickly as the pie expands. Cloud computing has reached a point of market acceptance that it was lacking in previous years, and that has led to growth across the market. Amazon continues to benefit from that growth.