Two weeks ago, Amazon announced its quarterly earnings, reporting a much larger net loss than expected. There was much speculation by pundits about the reasons for the scale of the loss (including me in a CNBC segment). Many commentators placed responsibility for size of the loss on Amazon Web Services -- after AWS responded to an approximately 30% price cut by Google, the size of the "other" AWS category, in which Amazon places AWS revenues, fell 3% from the previous quarter.
After the announcement, a number of tech commentators discussed the implications of this 3% revenue drop:
Quentin Hardy of The New York Times says that, despite the quarter "other" category being up 35% over the previous year, AWS growth may be slowing. Now that it faces additional competition from Google and Microsoft, along with the need to do more handholding of potential enterprise customers, it may confront tough times ahead.
To read this article in full or to leave a comment, please click here