The performance of the AWS remains strong. Already last year was excellent but the current year seems to accelerate the pace. One year might be too short window to use but the picture is not so different with wider window. In two years the revenue has more than doubled from Q1/2016 and $2.566B to $5.442B. From cash flow perspective, the impact of the AWS is crucial for Amazon. The quarter was good for Amazon (net income $1.9B in Q1) in particular due to the AWS as it generated net income of $1.4B alone.
It is worth to keep in mind that also other big public cloud vendors have increased their revenues a lot. Cloud market is bigger than ever and there are no indications that it will decrease any day soon. All of that underlines the trend that everyone is relying more and more on cloud based infrastructure. It is easy to point out the winners but where are the losers and how they can survive. The only way to decrease the impact the is modifications to business models. Selling just capacity is not enough anymore and business models should leverage to new dimension, maybe content.
Amazon itself has studied new business innovations in retail industry a lot and one of the interesting one is Amazon Go. That is a shop where are not clerks, customers just pick what they like and after they leave the shop they are automatically billed. For customer perspective that sounds fast, simple and convenient way to do shopping. Maybe that is the future…