AWS Earnings Preview: Layoffs, Andy Jassy, Margins On Deck

Will Amazon CEO Andy Jassy show up in next week’s quarterly earnings in the largest layoff round Amazon has ever carried out?

Is Amazon Web Services on Pace to Hit the $100 Billion Revenue Milestone in 2023?

Will AWS’ operating margins continue to decline?

On Feb. 2, when Amazon reports its Q4 2022 AWS earnings results at 4:30 p.m., CRN breaks down the five most important things to watch next week.

[Related: 40,000 Tech Layoffs: Amazon Vs. Google Vs. Microsoft]

AWS and Amazon revenue

AWS is one of Amazon’s most strategic assets. This is not only because of its innovation, but its profitability helps keep Amazon in the black.

The $80 billion cloud market share leader is growing sales at a much faster pace than its parent company. For example, his AWS sales in Q3 2022 increased 28% year-over-year to his $20.5 billion, showing much higher revenue growth compared to Amazon’s 15% year-over-year growth. increase.

The Seattle-based cloud market share leader is so important to Amazon that the company has selected former AWS CEO Andy Jassy to take over Amazon’s reins in 2021, his longtime CEO. Replaced by Jeff Bezos.

Public cloud spending soars

Global public cloud revenues will grow 21% in 2022 to reach a record $544 billion, according to new data from IT market research firm Synergy Research Group this week.

Synergy Research Chief Analyst John Dinsdale said in an email to CRN:

Synergy expects public cloud ecosystem revenues to double by 2027. This means that spending on public cloud solutions and services will easily exceed $1 trillion over the next four years.

With Amazon laying off 18,000 employees and with this kind of cloud growth in mind, all eyes will be on AWS’ earnings results next week. Here are five things to watch out for.