AWS Booms in Q3 Despite Amazon Falling Short Amazon Web Services (AWS), which earned $6.7 billion in the fiscal third quarter ending Sept. 30, according to analyst estimates, continues to be the cloud market leader. This is a 9% increase over the previous quarter’s $6.1 billion in AWS revenue. Amazon.com, its parent company, reported $56.6 billion in overall revenue, below Wall Street estimates of $57 billion. Amazon.com’s AWS cloud business is a reliable and bright spot. It is the fastest-growing business unit of Amazon.com, growing by 46% annually. Comparatively, the North America, International and European retail segments saw a 35% and 13% increase, respectively, over last year’s Q3. AWS accounted for 12% of Amazon.com’s total sales for the quarter. AWS operating income for Q3 was $2.1 billion, up 26% from Q2 but down 77% year-over-year. Microsoft Azure, AWS’ closest competitor, had an equally impressive quarter. According to Microsoft’s latest earnings report, Wednesday’s, revenues have increased 76% year-over-year, although the company did not provide an exact dollar amount. The No. However, the No. 2 public cloud provider is showing signs that its growth is slowing down. Scott Bekker writes in RCPmag, AWSInsider’s sister publication: “[T]he figure is slightly worrying to financial analysts who note that the Azure rate figure has been steadily declining over the past few years. The growth rate for the same quarter last year was 90%, while it was 116% two years ago. While AWS’ Q3 saw a stronger year over year growth than last year (42% growth), it was slower than Q2, which saw a jump of 49%. Amazon.com officials highlighted a few milestones achieved by AWS in Q3 that contributed to the cloud unit’s continued growth in Thursday’s earnings announcement.