Joseph Pisani AP Retail Writer Published 5:53 PM EDT Apr 25, 2019 New York – Amazon’s push into advertising and cloud computing is paying off, helping the online shopping giant’s first quarter profit more than double from a year ago. The company has boosted its profits by expanding into businesses beyond selling goods online. Its cloud computing business, which powers the video-streaming site Netflix, digital scrapbooking site Pinterest and many other companies, saw its revenue soar 41% from a year ago. The area is getting more competitive: Microsoft has also been growing its cloud business, and both Amazon and Microsoft are vying for a multibillion contract with the U.S. military. Amazon’s fast-growing advertising business has also become big money maker, selling ads to companies that want their products to show up first when shoppers search on the site. Amazon doesn’t say exactly how much its ad business makes, but lists it as part of its … [Read more...] about Amazon’s profit more than doubles on cloud computing growth
Cloud computing business
A slew of industry experts say Amazon is prepping to take on FedEx and UPS. Amazon says its network is used only to move goods in-house to manage its quickly rising shipping costs. But its network of ocean freight containers, trailers, fulfillment centers, cargo planes, and more is so large that not even Amazon could fill it, analysts say. Amazon’s moves in logistics lines up with how it launched Amazon Web Services, the company’s cloud-computing solution, now the leader in a $175.8 billion market. Amazon announced the day after Christmas that it delivered an astounding one billion parcels over the holiday season “for free.” The complicated logistics network that allows Amazon to move goods from factory to ship to loading dock to train to truck to fulfillment center to van to your doorstep is in fact anything but free. Amazon’s worldwide shipping costs have grown 15-fold from 2009 to 2018. Net sales have only increased by … [Read more...] about Amazon took over the $176 billion market for cloud computing. Now it’s using the same playbook in logistics.
FILE PHOTO: An airplane comes in for a landing above an Exxon sign at a gas station in the Chicago suburb of Norridge, Illinois, U.S., October 27, 2016. REUTERS/Jim Young/File Photo/File Photo (Reuters) - Exxon Mobil Corp and Microsoft Corp have agreed to use cloud technology in the U.S. oil producer’s shale operations, they said on Friday, helping to boost profitability in the nation’s largest shale field. The companies will collect data from Exxon’s wells and other production assets in the Permian Basin of West Texas and New Mexico, where the world’s largest publicly traded oil and gas company holds 1.6 million acres, and make it immediately accessible to Exxon workers. The value of the agreement was not disclosed. But the partnership is the industry’s largest in cloud computing, Exxon said in a statement. The technology would allow equipment leaks to be immediately detected to reduce repair times in remote locations, and apply artificial … [Read more...] about Exxon, Microsoft strike cloud computing agreement for U.S. shale
Cloud-computing companies have a message for skittish investors: demand is still booming. Earnings reports from the biggest providers of internet-based computing services -- Amazon.com Inc., Microsoft Corp., and Alphabet Inc.'s Google -- showed that these companies are grabbing a larger share of business technology spending, defying warnings from some of their suppliers that a hot corner of the industry might be cooling off. The cloud giants entered the year facing questions about whether they could sustain their robust growth rates in an environment of uncertain global economic growth and investment. And at the start of fourth-quarter earnings season last month, investors got some worrying news from companies that sell the networking equipment and computer chips that go into the data centers that underpin the cloud. Intel Corp., Micron Technology Inc. and Juniper Networks Inc. were among those blaming lackluster results on slower spending by data-center customers.Now, investors … [Read more...] about Cloud-computing giants keep growing despite slowdown fears
By Asa Fitch WSJ Mon., Jan. 28, 2019 Nvidia Corp. lowered its revenue outlook for its fiscal fourth quarter by $500 million because of what it said was weakening demand in China and a rocky cloud-computing business, a revision that wiped nearly 15% from the chip maker’s already beleaguered shares. The reduced expectations for the quarter came on top of a revenue projection from Nvidia in November that already was $700 million less than what analysts at the time had expected, underlining a deteriorating outlook for a company investors had coveted as it found new uses for its chips in cryptocurrency mining and artificial intelligence. Jensen Huang, Nvidia’s founder and chief executive, called the quarter “a real punch in the gut.” It “was an extraordinary, unusually turbulent, and disappointing quarter,” he said in a letter Monday to shareholders. The Santa Clara, Calif., company’s stock sank to about $136.70 in afternoon … [Read more...] about Nvidia Lowers Guidance on Weakness in China, Cloud Computing